National Broadband Strategy 2018-2023

The National Broadband Strategy 2018-2023

REPUBLIC OF KENYA

NATIONAL BROADBAND STRATEGY 2018-2023

The National Broadband Strategy 2018-2023 ACKNOWLEDGEMENTS

This strategy is a culmination of collaborative work that could not have been completed without the support of the government and the concerted efforts of the National Broadband Strategy (NBS) Steering Committee and stakeholders including Information and Communications Technology (ICT) infrastructure providers, service providers, the education sector, finance, complementary infrastructure sectors including Roads and Energy, special interest groups and the general public each of whom devoted their time, effort and expertise. It would not have been possible to develop the strategy without the invaluable input from the Cabinet Secretary Ministry of Information and Communication Technology (MoICT), Principal Secretaries in the Ministry, other Ministries, Departments and Agencies (MDAs), senior officials, the Communications Authority of Kenya (CA) and officials from other Government Ministries who took time to participate in extensive consultations that helped shape this Strategy. The Strategy echoes the country’s commitment to leverage on broadband as an enabler towards a globally competitive knowledge-based society and it is our hope that the same collaborative commitment and spirit that enriched the development of this Strategy will be carried forward for the successful implementation of the Strategy.

The National Broadband Strategy 2018-2023 TABLE OF CONTENTS ACKNOWLEDGEMENTS ...... 2 TABLE OF CONTENTS ...... 3 LIST OF FIGURES ...... 5 FOREWORD ...... 6 ACRONYMS AND ABBREVIATIONS ...... 7 EXECUTIVE SUMMARY ...... 10 1. INTRODUCTION ...... 13

1.1 PROCESS ...... 13 1.2 DEFINITION OF BROADBAND ...... 14 1.3 RATIONALE FOR THE NATIONAL BROADBAND STRATEGY ...... 14 1.4 BACKGROUND ...... 15 1.5 VISION AND PRINCIPLES ...... 18 1.6 SUPPLY AND DEMAND OF BROADBAND ...... 20 1.7 EQUITY AND SOCIAL INCLUSION ...... 21 1.8 ASSUMPTIONS ...... 22 1.9 OUTCOMES OF THE BROADBAND STRATEGY ...... 23 2. RELEVANCE TO NATIONAL LEGAL, POLICY AND REGULATORY FRAMEWORKS AND NATIONAL DEVELOPMENT PLANS ...... 24

2.1 BIG FOUR AGENDA ...... 24 2.2 BROADBAND DELIVERING THE BIG FOUR AGENDA ...... 25 2.3 BROADBAND FOR ALL ...... 27 3 STRATEGY...... 27

3.1 POLICY, LEGAL AND REGULATORY ENVIRONMENT ...... 29 3.2 INFRASTRUCTURE AND CONNECTIVITY ...... 37 3.3 SERVICES, CONTENT, AND APPLICATIONS ...... 42 3.4 CAPACITY BUILDING AND INNOVATION ...... 44 3.5 BROADBAND DEVICES ...... 49 3.6 PRIVACY AND SECURITY ...... 52 3.7 FINANCE AND INVESTMENT ...... 54 3.8 INTEGRATED BROADBAND PROJECTS ...... 62 4. ROLES OF STAKEHOLDERS ...... 63

4.1 MULTI-STAKEHOLDER APPROACH TO NBS 2023 IMPLEMENTATION ...... 63 4.2 ROLE OF PRIVATE SECTOR AND DEVELOPMENT PARTNERS ...... 65 5. GOVERNANCE AND DELIVERY STRUCTURE ...... 69

5.1 NATIONAL BROADBAND STRATEGY COORDINATION ...... 69 5.3 BROADBAND DELIVERY UNIT ...... 70 5.4 COMPENSATION FOR NATIONAL BROADBAND COUNCIL MEMBERS ...... 71 5.5 COLLABORATION ...... 71 5.6 MONITORING AND EVALUATION FRAMEWORK ...... 71 5.7 COMMUNICATION STRATEGY FOR THE BROADBAND STRATEGY ...... 72 6. BUDGET, STRATEGIC MAPPING AND RISK MANAGEMENT ...... 72

The National Broadband Strategy 2018-2023

6.1 BUDGET BACKGROUND, RATIONALE AND BENCHMARKING ...... 72 6.2 STRATEGIC MAPPING ...... 73 6.3 RISKS AND MITIGATION STRATEGIES ...... 75 GLOSSARY ...... 76 APPENDICES ...... 79

APPENDIX I: IMPLEMENTATION PLANS ...... 79 APPENDIX II: ROLE OF STAKEHOLDERS ...... 110 APPENDIX III: BROADBAND IMPLEMENTED THROUGH PROGRAMS AND PROJECTS ...... 111 APPENDIX IV: SPECIFIC CONSTITUTIONAL ASPIRATIONS FOR ICTS UNDER THE BILL OF RIGHTS ...... 114 APPENDIX VI: NBS REVIEW TECHNICAL WORKING GROUPS PARTICIPANTS ...... 121 APPENDIX VII: BENCHMARKING ...... 123 APPENDIX VIII: INVESTMENT AND BUSINESS MODEL ...... 130 APPENDIX IX: COMMUNICATION STRATEGY ...... 134 APPENDIX X: NBS 2023 PROJECTS ...... 137

The National Broadband Strategy 2018-2023 LIST OF TABLES Table 1: Flagship Projects for NBS 2023 ...... 11 Table 2: Broadband Delivering Big Four Agenda ...... 25 Table 3: Fundamental Freedoms and Pending legal instruments...... 29 Table 4: Broadband Innovations and employment projects ...... 47 Table 5: Gaps and Opportunities for Broadband Devices ...... 49 Table 6: Broadband Devices Initiatives and Outcomes ...... 51 Table 7: Broadband Investment and Business Model ...... 59 Table 8: Strategic role of key stakeholders in Broadband Value chain ...... 66 Table 9: Monitoring and Evaluation for Broadband (An Example) ...... 72 Table 10: Summary of estimated budget for implementing NBS 2023 ...... 73 Table 11: Strategy Mapping of the National Broadband Strategy ...... 73 Table 12: Risks and mitigation strategies ...... 75 Table 13: Strategy for Policy, legal and Regulatory Environment ...... 79 Table 14: Strategy for Infrastructure and Connectivity ...... 88 Table 15: Strategies for Broadband Services Application and innovation ...... 92 Table 16: Strategy for Content and innovation ...... 94 Table 17: Broadband Service initiatives and Activities ...... 97 Table 18: Strategy for Capacity Building and Innovation ...... 99 Table 19: Strategies for Broadband Devices ...... 102 Table 20: Strategy for Privacy and Security ...... 106 Table 21: Strategy for Finance and Investment ...... 108 Table 22: Roles of Government and other stakeholders ...... 110 Table 23: Proposed NBS 2023 Projects ...... 137

LIST OF FIGURES Figure 1: NBS 2023 Development Process ...... 13 Figure 2: Broadband Strategy Implementation Focusing on Demand and Supply ...... 21 Figure 3: NBS 2023 Overview ...... 22 Figure 4: NBS Thematic Areas ...... 28 Figure 5: Status on Policy, legal and Legislation ...... 31 Figure 6: Status on Infrastructure and Connectivity ...... 38 Figure 7: Kenya Broadband Penetration and Subscription ...... 39 Figure 8: Mobile Technology Coverage in Kenya ...... 40 Figure 9: Status on Service, Content and Application ...... 43 Figure 10: Status in BB Capacity Building and Innovation ...... 46 Figure 11: Status on Broadband Devices ...... 50 Figure 12: Status on privacy and Security ...... 53 Figure 13: Status on Finance and Investment ...... 56 .Figure 14: Financing Models ...... 61 Figure 15: Governance and Delivery Structure ...... 69 Figure 16: ITU Cybersecurity Guide ...... 105 Figure 17: TWG Chairs and Co-Chairs ...... 122

The National Broadband Strategy 2018-2023

FOREWORD

Broadband has in recent years impacted and transformed peoples’ lives in different ways and continues to shape the modern economy. However, there continues to exist certain challenges such as digital divide in accessing broadband services that have somewhat negated the broadband imprint envisioned in the first National Broadband Strategy (2013-2017) that aimed at transforming Kenya into a knowledge-based society enabled by high-capacity nationwide broadband connectivity. Besides infrastructure capacity limitations and inadequate institutional framework, cyber security, privacy and data protection have also in part affected the uptake of broadband services in Kenya. Nevertheless, the knowledge economy also known as the fourth industrial revolution presents and continues to provide a platform upon which Kenya can leverage on new technologies such as Internet of Things (IoT), Big Data Analytics, Artificial intelligence (AI), and distributed ledgers to actively participate in the global economy which invariably demand high-speed broadband and data services. The process of formulating this Strategy has given us the opportunity to take stock of past successes and failures. Through this process, we have also envisioned the strategic objectives for the future while at the same time appreciating the rapidly evolving ICT landscape. The strategic themes adopted in this Strategy reinforce our broadband vision, namely, to be a globally competitive knowledge-based society enabled by broadband. It complements, among others, the African Union Agenda 2063 and the Sustainable Development Goals (SDGs) as we embark on the next phase of the Vision 2030 journey – the Medium Term Plan III (MTP) (2018–2022) and the implementation of the Big 4 Agenda. In the implementation of this Strategy, we entrust the various agencies identified in the respective action areas with the firm belief that through implementation of the strategic initiatives, the societal and economic benefits of digital transformation will be realized. We reaffirm the need to harness the synergies and inter-linkages prominent in digital landscapes towards this end. I am optimistic that with the envisaged partnerships and collaboration of all stakeholders, the objectives we aspire to accomplish will ultimately translate into milestones that will in fullness of time be attributed to our collective efforts. I strongly urge each one of us to embrace broadband; the key to a true knowledge-based economy that will cement our position within the information society. Thank you and God bless you.

Hon. Joe Mucheru, EGH Cabinet Secretary, Ministry of Information, Communications and Technology

The National Broadband Strategy 2018-2023 ACRONYMS AND ABBREVIATIONS

4P - Pervasive Public Pipes in-Perpetuity ACA - Anti-Counterfeit Agency AfDB: - Africa Development Bank AG - Attorney General ASP - Application Service Providers ATU - Africa Telecommunication Union BB - Broadband BDU - Broadband Delivery Unit CA - Communication Authority of Kenya CAPs - Community broadband Access Points CBD - Central Business District CBK - Central Bank of Kenya CBO - Community Based Organization CCK - Communication Commission of Kenya CCP - County Connectivity Project CDN - Content Delivery Network CERT - Computer Emergency Response Teams CH - Copyright Holder CIH - Constituency Innovation Hubs CIRT - Cyber Incident Response Team CMA - Capital Markets Authority CMS - Content Management System CoG - Council of Governors COP - Child Online Protection CS - Cabinet Secretary DBO - Design Build Operate DC - Data Controller DCI - Director of Criminal Investigation DLP - Digital Literacy Program DSL - Digital Subscriber Line EACC - Ethics and Anti-Corruption Commission EASSY - Eastern Africa Submarine Cable System EMCA - Environmental Management and Coordination Act ERB - Engineers Registration Board EU - European Union FINTECH- Financial Technology FIRST - For Inspiration and Recognition of Science and Technology FY - Financial Year Gbps - Gigabits per Second GCCN - Government Common Core Network GDP - Gross Domestic Product GDPR - General Data Protection Regulation GEMS - Growth Enterprise Management Segment GIS - Geographic Information System GNI - Gross National Income GOK - Government of Kenya GSM - Global System for Mobile communication HAPS - High Altitude Platform Station IBP - Integrated Broadband Project ICT - Information and Communication Technology

The National Broadband Strategy 2018-2023 ICT4D: - ICT for Development ICTA - Information and Communication Technology Authority IFC - International Finance Corporation IoT - Internet of Things IPC - Investment Promotion Center IPs - Intellectual Properties IPPF - Infrastructure Project Preparation Facility IPTV - Internet Protocol Television ISO - International Organization for Standards ITES - Information Technology Enables Services ITU - International Telecommunication Union JTL - Jamii Telecommunications Limited KCAA - Kenya Civil Aviation Authority KCCI - Kenya Chamber of Commerce and Industry KDAR - Kenya Data Access Regulation KENET - Kenya Education Network KENHA- Kenya National Highways Authority KERRA - Kenya Rural Roads Authority KETRACO- Kenya Electricity Transmission Company KFC - Kenya Film Commission KFCB - Kenya Film Classification Board KICD - Kenya Institute of Curriculum Development KIPI - Kenya Industrial Property Institute KNSDI - Kenya National Spatial Data Infrastructure KPI - Key Performance Indicator KPLC - Kenya Power and Lighting Company KURA - Kenya Urban Roads Authority LSK - Law Society of Kenya M&E - Monitoring and Evaluation Mbps - Megabits per Second MDA - Ministries, Departments, and Agencies MENA - Middle East and North Africa MFI - Microfinance Institutions MNO - Mobile Network Operator MOEST - Ministry of Education, Science and Technology Science and Technology

MoICT - Ministry of Information and Communications Technology MTP - Medium Term Plan NBC - National Broadband Committee NBS - National Broadband Strategy NCA - National Construction Authority NCSC - National Cyber Security Centre NDC - National Designation Codes NEMA - National Environment Management Authority NEPAD - New Partnership for Development NFP - Network Facilities Provider NGO - Non-Governmental Organization NOFBI - National Optic Fibre Backbone NPS - National Police Service NREN - National Research and Education Network NSE - Nairobi Securities Exchange ODR - Online Dispute Resolution

The National Broadband Strategy 2018-2023 OTP - One Time Password OTT - Over the Top PA - Public Authority PAP - Public Access points PC - Personal Computers PDTP - Presidential Digital Talent Program PPP - Public-Private Partnerships PWD - Persons With Disabilities QoS - Quality of Service SACCO - Savings and Credit Cooperative Organization SADC - Southern African Development Community SC - Multi-agency broadband Steering Committee SDGs - Sustainable Development Goals SGR - Standard Gauge Railway SLA - Service-Level Agreement SME - Small and Medium-sized Enterprises SOC: - Security Operations Center TCO - Total Cost of Ownership TEAMS - The East African Marine Systems TESPOK- Technology Service Providers of Kenya TI - Transparency International ToR - Terms of Reference TVET - Technical and Vocational Education and Training TWG - Technical Working Group USF - Universal Service Fund USP - Universal Service Provision VAS - Value Added Services WIMAX - Worldwide Interoperability for Microwave Access

The National Broadband Strategy 2018-2023 EXECUTIVE SUMMARY

The Government of Kenya presents the National Broadband Strategy (2023) for the country. This strategy builds on the 2013-2017 strategy and takes into account recent technological and industry trends as well as market realities. The vision of NBS 2023 is to transform Kenya into a globally competitive knowledge-based society enabled by affordable, secure and fast broadband connectivity.

Broadband is expected to facilitate connections that will create opportunities for smart solutions that will help in transforming Kenyans’ everyday life, their common creativity, the development of business ideas, regardless of their location and thus enable societal and economic benefits of digital transformation to be realized. In collaboration with the private sector and development partners, the Government intends to leverage broadband to deliver its Vision 2030 flagship projects as well as the Big 4 Agenda; namely food security, universal healthcare, affordable housing and manufacturing.

By implementing NBS 2023, the government aims at increasing access to broadband coverage of 3G to 94% of the population by 2020; and increase digital literacy in schools to 85%, expand broadband to the 47 counties and especially to have 50% digital literacy amongst the workforce.

The strategic objectives of this strategy are outlined in the implementation plan which is organized into seven thematic areas namely: (1) Infrastructure and Connectivity, (2) Services, Content and Applications; (3) Capacity Building and Innovations (4) Policy, Legislation, and Regulation; (5) Privacy and Security; (6) Broadband devices; and (7) Finance and Investment. The seven thematic areas cover the broadband ecosystem, which have been broken down into gap analysis, opportunity identification, strategic objectives and an implementation plan for each theme.

The strategy underscores the role of both the public and private sector in funding of broadband infrastructure and emphasizes the participation of government, private sector investments and development partners in financing broadband projects particularly by incentivizing infrastructure rollout in remote areas and in areas encumbered by challenges concerning the profitability of broadband investments.

This NBS is aligned with Vision 2030 and the Government’s Big Four Agenda. Under this framework, to become a globally competitive and informed society that effectively participates in the knowledge- based economy, the availability, access to high-speed broadband countrywide and access to reliable, affordable, and secure broadband is imperative. To this end, Kenyan societies; businesses, government agencies and individuals are envisaged to embrace paperless transactions.

The implementation of this strategy requires intervention in several strategic areas as follows:- • National Government to facilitate access to national optical fiber broadband infrastructure (NOFBI) on an open access basis for all operators. • Treating broadband as critical infrastructure, sensitizing everyone on its importance and using it to elicit demand and uptake. • Harmonization of the development of infrastructure to reduce duplication and encourage sharing of infrastructure thus increase coverage and achieve cost efficiency • Engagement at both National and County government levels to increase awareness, and use of broadband services • Promoting development and universal access to digital content and services, including emerging technologies in Fintech (Blockchain, Mobile Money, Big Data analytics, IoT and artificial intelligence) • Capacity building to increase digital literacy among citizens, • Adoption of common technical standards and facilitate the development of international, regional and national backbones

The National Broadband Strategy 2018-2023

• Providing an enabling environment and encourage local industry device manufacture, maintenance and recycling which will create jobs and address e-waste issues. • Protection of consumer interests and ensure security in accessing broadband services • Draft policies on broadband ecosystem as a whole including spectrum and develop instruments and practical tools such as guidelines and regulations that would more precisely define various risk levels as relates to particular information security scenarios • Promotion of private sector investments, Joint Ventures, and Public Private Partnerships (PPPs) within the ICT sector; and introduce tax and regulatory incentives for infrastructure investment, particularly where initial capital outlay is high among others.

The achievement of the 2023 broadband strategy is anchored on execution of key flagship projects among other projects within each thematic area as presented in Table 1.

Table 1: Flagship Projects for NBS 2023

Thematic Area Project Proposed Target Policy, legal and Enact data Protection law (Article 31 of the Enactment of Act by regulatory framework Constitution) 2020 Enact law pronouncing broadband as critical Enacted legislation by Infrastructure 2020 Infrastructure and Last mile connectivity by extending broadband to the 100% connectivity by Connectivity Ward level- entails construction of Ward base stations 2023 at least 2 stations for each of the 1,450 wards in the country. Services, Content and Creation of standards for services and content Services and content applications standards by 2021 Capacity Building and National public education on broadband One awareness Innovation campaign every quarter Devices Design and manufacture broadband devices in Kenya At least 1 device by 2020 by a local manufacturer Privacy and security Establishment of a cyber-security operations center 1 security operation by and International collaboration on cybersecurity. 2021 preceded by a Cyber-security strategy Finance and Creation of conducive environment for Broadband Fiscal and regulatory Investment investment through fiscal and regulatory incentives incentives implemented Big Four and BB Universal healthcare services delivery at level 1-6 100% by 2020 heath facilities. 2 systems by 2022 Develop e-agriculture systems to improve food security Embed broadband in all Embed broadband in the government affordable smart housing projects housing project and in other housing projects to realize smart housing 100% of all Promote broadband in the manufacturing sector to manufacturing firms improve efficiency using broadband

In order to implement this strategy, a multi-stakeholder National Broadband Council shall be set up and mandated to coordinate the implementation of NBS 2023 with the support of monitoring and evaluation by the National Communication Secretariat. A robust monitoring and evaluation framework with timelines for deliverables will be prepared and publicized to guide in the tracking of the implementation. The Ministry of ICT is confident that this NBS 2023 will usher in an era of coordinated investments in national ICT infrastructure in order to eliminate unnecessary duplication of investments and thus ensure optimal use of resources in the sector.

The National Broadband Strategy 2018-2023 The proposed budget for this strategy is estimated at Kshs. 111 billion (1.5% of the Gross Domestic Product (GDP) for Financial Year (FY) 2017/18) spread over five years. This translates to 0.3% of the GDP being spent on broadband (BB) each year which is commensurate with the contribution of the sector to the GDP per annum. It is also proposed that the budget is increased as the contribution of ICTs to GDP increases. The funding for the budget will be sourced from the private investment and through PPPs while the Government will provide an enabling environment and incentives. Further, an integrated planning for broadband projects will be adopted to ensure that all inputs are catered for to ensure successful implementation. This strategy comprises six (6) chapters and 10 appendices. Chapter 1, outlines the process followed in the development this strategy, definition of broadband, rationale, background, vision and principles. Aspects of supply and demand, equity, assumptions and expected outcomes are also presented in this chapter. Chapter 2 presents the relevance of broadband to national development plans including vision 2030 while Chapter 3 outlines the strategic thrust and objectives of this strategy. Chapter 4, 5, and 6 outlay the Role of Stakeholders, Governance and Delivery structure, and Deployment and Performance Management respectively.

The National Broadband Strategy 2018-2023 1. INTRODUCTION

The Government considers broadband as an enabler of all sectors including social, economic and political development of Kenya within the framework of ICT for development (ICT4D). To harness the full developmental potential of ICTs, we need, as a country, to have a well-coordinated and synchronized strategy. This National Broadband Strategy 2018-2023 (NBS 2023) has been formulated to enable effective contribution of broadband for Kenya in its quest to be a globally competitive knowledge-based society.

1.1 Process This strategy has been developed through consultations with stakeholders comprising the government, sector players, users of broadband, civil society and global partners who have generously shared their knowledge and experience thereby providing learning and assisting to shape this strategy (See Appendix VI). These consultations resulted in inputs cutting across government and the various sectors of the economy which have addressed the critical role of the broadband ecosystem in the economy as a whole.

With the expiry of the first National Broadband Strategy 2013-2017 (NBS 2017), it was imperative to take stock of Kenya’s performance with a view to revising the strategy to guide the country for the next five years. The Ministry of ICT (MoICT), through the Principal Secretary, constituted an inter-agency multi-stakeholder team to embark on the process of developing the second edition of the National Broadband Strategy. The review exercise was coordinated through thematic areas with a view of developing a Strategy that caters for the needs of all sectors. As the various Technical Working Groups (TWGs) embarked on the review, a number of questions were asked. These included; how much of these targets had been realized by 2018; what challenges had been identified during the implementation of NBS 2017; and whether the targets were realistic in the first place. Before the TWGs sessions, primary data were collected using survey questionnaires, interview guides and focus group discussions and analysed. Secondary data were also collected from published sources, which included regulator of the ICT sector and online reports and analysed. The findings were discussed in TWGs and a draft NBS 2023 report prepared and later refined. The report was then presented to the CA management and their input incorporated before presenting of the report to the Cabinet Secretary in charge of ICT for further input. The input from the CS was then incorporated and the Strategy subjected to public consultations. The input from the public consultations was synthesised and presented during the NBS 2023 validation workshop. During this workshop, more input was received from stakeholders and incorporated into the final document. NBS 2023 is the final result of this process. The process that was followed is shown in Figure 1.

Figure 1: NBS 2023 Development Process

The National Broadband Strategy 2018-2023 1.2 Definition of Broadband

NBS 2017 defined broadband as (Connectivity that is always-on and that delivers a minimum of 5mbps to homes and businesses for high-speed access to voice, data, video and applications for development). A review of this definition and benchmarking of definitions of broadband necessitated a comprehensive definition of broadband for Kenya to include quality, affordability, security and the overarching aspirations of Kenya as captured in Vision 2030. In this regard, and for purposes of this strategy, broadband for Kenya is defined as:

“Connectivity that delivers interactive, secure, quality and affordable services at a minimum speed of 2Mbps to every user in Kenya”.

1.3 Rationale for the National Broadband Strategy The NBS 2017 was envisaged to provide a holistic and coordinated approach in ensuring: • High-speed and reliable broadband networks that are universally accessible throughout the country; • Local and relevant content are generated and availed; • All citizens including children in primary schools and adults across the country would be empowered through digital literacy and awareness; • A vibrant and well-funded innovations ecosystem be nurtured to tap into our youth to provide creative solutions • Would stimulate the uptake of ICTs. In addition, the ICT policy, legal and regulatory frameworks were envisaged to be enablers to drive the Strategy. 1.3.1 Growth of ICT Sector in Kenya In the last decade, the ICT sector in the country has experienced exponential growth largely attributable to liberalization, and a robust regulatory regime under CA. However, it is still of concern to the Ministry of ICT that, despite heavy investment in ICT infrastructure, there exists a wide ‘digital divide’ in the access to Internet services in the country. While the unprecedented growth of voice services, which was recorded at slightly more than 94 percent of the population as at December 2017 is plausible, the same cannot be said about high- speed Internet or data services. By December 2017, the number of Internet users in Kenya was 33 million, out of which, only slightly less than 1 million were broadband subscriptions. There is, therefore, need to look into why broadband uptake is still low despite the country being connected to four international undersea fiber optic cables. 1.3.2 Broadband Gaps Despite interventions by MoICT such as investment in the National Optical Fibre broadband infrastructure (NOFBI) to increase broadband access, the following gaps remain pertinent: (i) The need to clearly define broadband for Kenya (ii) Broadband has not reached most parts of rural Kenya (iii) Last mile connectivity is still a challenge (iv) High broadband charges in Kenya. (v) Lack of relevant digital content and applications (vi) Shortage of demand-side skills to enable broadband services to be used effectively

The National Broadband Strategy 2018-2023 (vii) Lack of supporting infrastructure, i.e. poor or no access roads, lack of main power supply and disparity in requirements by County Governments e.g. high wayleaves fees that discourage broadband rollout. (viii) Incoherent investment models, construction costs, and collaboration across the industry chain. (ix) Insufficient levels of trust in and security of broadband. (x) Limitations related to broadband devices, which are both demand enablers and e-waste contributors. (xi) Limited innovative broadband services that are relevant for uptake across all socio-economic sectors to improve efficiency in these sectors and awareness of such services. (xii) Governance and delivery framework for broadband (xiii) Broadband vision for Kenya 1.3.3 Promoting Broadband Development Access to broadband has been recognized worldwide as an accelerator of economic development and an enabler of socio-economic wellbeing. The government intends to leverage ICTs to deliver its development plan, the Vision 2030 and the Big 4 Agenda. In this regard, this strategy is an outcome of a comprehensive review of NBS 2017 and best practice benchmarking which addresses the gaps in the implementation of NBS 2017 while providing a roadmap for ‘Kenya Connected by 2020’ and for other national development agendas among other initiatives: • The government will make necessary interventions to ensure development of broadband including targeted subsidies • Encouraging technology pilots to stimulate innovations • Encouraging cost reduction through network sharing • Embracing public-private partnerships that spur development • Creating enabling institutional, regulatory, policy and legal environment • Introducing incentives that encourage investment in high-cost areas • Elaborating on the specific role of the Universal Service Fund (USF) in complementing the overall strategy • Enhancing the governance and delivery structure for broadband in order to realize its benefits across all sectors of the society • Comprehensively defining broadband for Kenya • Reviewing the broadband vision for Kenya 1.3.4 Contrasting NBS 2017 with NBS 2023

An evaluation of the extent of achievement of NBS 2017 targets revealed that most of them had not been achieved, some may have been very ambitious, and there was inadequate governance and delivery structure. Further, less emphasis was placed on the demand side of broadband both in strategic objectives to be pursued and in the focus (thematic) areas. Specifically, drivers of broadband uptake, namely privacy and security, affordability, innovation, and creation of awareness of broadband were much less emphasized compared to supply side aspects such us rollout of backbone infrastructure. NBS 2023 builds on the gains and fills the gaps that were discerned upon the end date evaluation of NBS 2017. 1.4 Background

Information and Communication Technologies (ICTs) are acknowledged globally as enablers of socio- economic development. When implemented properly, these technologies could reduce, if not eliminate

The National Broadband Strategy 2018-2023 altogether, poverty and imbalances in society. To harness the full developmental potential of ICTs, a well-coordinated and synchronized strategy for the ICT sector is needed.

1.4.1 Overview of Broadband in Kenya

Kenya has made tremendous strides in promoting the uptake of ICT services. Mobile telecommunications in the country, for example, constitute close to 44.1 million mobile subscriptions for a population of just over 46.4 million people. Nevertheless, the digital divide must be addressed if all Kenyans are to participate actively in the knowledge economy. In some parts of the country, for example, people still have to walk more than 2 kilometers to access mobile cellular signal and most particularly in 13 far-flung counties from Turkana to Mandera and further down to Tana River. In addition, access to Internet and data services is still a mirage in many parts of Kenya.

To scientifically identify the access gaps in the country, CA in 2016, conducted an ICT Access Gaps Study. According to the Study report, there are more than 580 sub-locations with less than 50% Global System for Mobile communication (GSM) population coverage of which 164 had no mobile signal at all. On the other hand, there were 2,221 sub-locations with less than 50% 3G-population coverage of which 1,221 have no access to 3G services at all. There is low geographical coverage of broadband services; for example, 50% of locations have no 3G services; further, 83% of the land mass lacks broadband services coverage. In addition, fiber optic cables only cover 60,000 km (17% land coverage). Clearly, the challenge of bridging the digital divide is huge and requires concerted effort by all stakeholders.

In an effort to bridge these gaps, CA is currently implementing two flagship projects through the mechanism of the Universal Service Fund (USF), namely:

(i) The Voice Infrastructure and Services Project geared towards ensuring all sub-locations in the country have access to basic mobile voice services. In the 2017/2018, financial year the Authority connected 78 sub-location that were previously un-served. (ii) The Education Broadband Project aimed at facilitating broadband connectivity to all public secondary schools in the country. In the Financial year 2017/ 2018, CA had connected a total of 896 public secondary schools.

One of the gaps identified in the NBS 2017 was inadequate attention to broadband in the current national ICT policy, specifically, the existing policy, legal and regulatory framework needed to more exhaustively address the issues of access to, use of and benefit from broadband services; and security of broadband from both the supply and demand sides. Further, the institutional framework for the delivery of broadband needed attention.

Key evaluation questions that informed the development of NBS 2023 revolved around the following issues: (i) Broadband Definition; (ii) Broadband outcomes and impacts; (iii) Policy, Legislation and Regulation; (iv) Broadband coverage; (v) Monitoring and Evaluation of broadband; (vi) Broadband Thematic areas; (vii) Flagship Projects; (viii) Institutional Framework for Broadband strategy delivery; (ix) Relevance of broadband to the SDGs, Vision 2030 and the Big 4 agenda; and, (x) Broadband vision for Kenya.

The National Broadband Strategy 2018-2023 1.4.2 Drivers of Uptake of Broadband

The uptake and adoption of broadband remains a crucial component of a robust broadband ecosystem. The demand and supply sides of broadband must therefore be responsive to the market dynamics that eventually feed into a balanced ecosystem that takes stock of the demand side by, for example, availing relevant content, offering connectivity at affordable prices, providing quality of service, building capacity and education, creating awareness and guaranteeing security online. On the supply side, the legal, policy and the regulatory regime should provide for competition, flexibility and cooperation, the regulators should promote investment by providing incentives such as tax breaks, promoting cooperative business models through licensing and adopting best practices in the regulation of broadband. Service providers should also contribute by adopting progressive business models such as infrastructure sharing to address bottlenecks like digital divide. Other drivers of broadband such as government support and investment, income, population density, education levels and services should also be taken into account. 1.4.3 Emphasis of the National Broadband Strategy

The strategy reiterates focus of NBS 2017 and others that have emerged since its launch in 2013 within the context of achievement of its implementation targets. It is based on identified gaps in the extent of implementation of NBS 2017 and specifies actions to remedy any previous shortcomings. Since most of the previous ICT strategies (including the Kenya NBS) have to a comparatively larger extent addressed the supply side compared to the demand side of the broadband, this strategy, to further stimulate the development and diffusion of broadband moving forward, will include creating policies, legislation and regulations with more emphasis on: (i) Policy framework on broadband, namely a review and alignment of the National Information and Communications Policy guidelines to reflect issues of broadband and leverage on regional and international frameworks for collaboration on broadband. (ii) Legal and regulatory framework on broadband, which includes a review and alignment of existing legislation (Kenya Information and Communication Act CAP 411A and other relevant Acts e.g. Roads Act, Building Code) with the requirements of the Constitution, 2010. A review and alignment of relevant regulations with the requirements of updated legislation is also necessary. (iii) Cyber security which is a crucial demand side issue in broadband and given the many cyber breaches that continue to be committed leading to huge financial and other types of losses (including privacy) across sectors, will also be highlighted in order to build trust and confidence broadband hence stimulate uptake of broadband services. In this regard, review of the National Cyber Security Strategy is key, among other cybersecurity related actions. 1.4.4 Thematic areas

In order to address the gaps that were discerned in the NBS 2017, and hence leverage broadband for socio-economic development, this National Broadband Strategy is premised on the following seven (7) thematic areas: • Infrastructure and Connectivity; • Services, Content, and Applications • Capacity Building and Innovations; • Policy, Legislation, and Regulation; • Privacy and Security; • Broadband devices; • Finance and Investment;

The National Broadband Strategy 2018-2023 The three additional thematic areas; broadband services, broadband devices and privacy and security of broadband have been added to specifically address the demand side of broadband where quality services, devices to access broadband services, and concerns about privacy and security while using broadband services are important considerations.

1.5 Vision and Principles

This strategy has a vision and a set of principles that guided its development and will also inform its implementation over the 2018-2023 period. 1.5.1 Vision The vision of this strategy envisages the contribution of broadband to the realization of Vision 2030 and is as follows: “A globally competitive knowledge-based society enabled by secure and fast broadband connectivity” 1.5.2 Theme

The overall theme of this strategy is ‘broadband for all.’ This implies that all citizens will have access to secure, quality and affordable broadband and be able to access all available broadband opportunities for all aspects of their lives. Similarly, all citizens will have equitable access to broadband. 1.5.3 Principles This strategy is based on a set of four principles that have been identified and are explained as follows:

• Promotion of National values towards the achievement of Vision 2030 As a key enabler towards the realization of the Vision 2030 and beyond, this strategy echoes and calls upon each player within the broadband ecosystem to uphold the values enshrined under Article 10 of the Constitution as the fundamental basis upon which the implementation of the strategic objectives of this strategy must be underpinned which include equity, cohesion and social inclusion. This strategy aspires to avail the benefits of broadband to all without exclusion. To this end, the interests residing in each corner of the societal fabric as enshrined in our Constitution including the special interest groups have been taken into account in coming up with action areas that will, if faithfully implemented, contribute to equitable inclusion and thereby unleash the broadband wonders to all.

• Awareness creation, security, education, research and innovation The journey towards a knowledge-based society is gaining pace by the day. Invariably, data and online presence have blossomed in economic and social value. This has made high-speed broadband an imperative that is becoming a necessity by the day. As such, building technical and user capacity, education, awareness creation, research and innovation remain crucial components of a robust knowledge-based society. This strategy aspires to make possible the broadband vision by making these components prominent.

• Collaboration, coordination, integration and sharing At the heart of a robust broadband ecosystem must exist ready, willing and open collaborative, coordinated and integrated regimes including at the operational, technical and policy levels. These regimes should embrace sharing of ideas, experiences, insights and resources as a means of realizing the aspirations of this strategy. This principle will be embraced and encouraged in order to effectively address the demands of the knowledge economy. This is especially necessary for the

The National Broadband Strategy 2018-2023 fight against cybercrime, in cyber security, management of scarce resources and in the delivery of all the other NBS 2023 programs and projects.

• Open access, technology and network neutrality and competitiveness Ultimately, the success of this Strategy will hinge on an enabling legal, policy, regulatory and institutional environment that not only acknowledges the supply side of broadband, but one that equally protects the demand side of broadband. By providing an environment characterized by market mechanisms, flexibility, international cooperation among other best practices, it is hoped that the balance between the demand and supply sides of broadband, will be achieved and thereby contribute positively to the broadband vision.

The National Broadband Strategy 2018-2023 1.6 Supply and Demand of Broadband

The deployment of broadband should encompass both the supply and demand aspects of broadband.

An important driver of broadband uptake is effective attention to demand-side questions besides affordability. In this regard, privacy and security are crucial demand-side considerations. The European Union (EU), in a communication titled An Open, Safe and Secure Cyberspace, and published in February 2013 posits that:

“Information and communications technology has become the backbone of our economic growth and is a crucial resource which all our economic sectors rely on as it now underpins the complex systems which keep our economies running with many business models built (and dependent) on uninterrupted availability of the Internet and the smooth functioning of information systems.”1 This EU position has important implications for the development of broadband in Kenya; specifically with regard to the demand side of broadband. On the supply aspect, broadband infrastructure and services will be rolled out throughout the country. The delivery of services will be through wired and wireless connectivity, while the existing broadband and cellular coverage will be expanded with the Government – MoICT and CA –providing an enabling environment that encourages investment by the private sector. For the high economic impact areas, the existing broadband services will be upgraded to provide higher speeds of more than 10 Megabits per second (Mbps). Since infrastructure is expensive, the Government should negotiate with Public Private Partnerships (PPPs) and enter into agreement with Telecom companies to roll out high-speed broadband infrastructure in selected areas through national broadband infrastructure projects. To facilitate the effective supply of broadband therefore, enabling legislation, regulation and institutional framework should be provided.

1 Lloyd I, Information Technology Law, (7th) OUP, New York, 2014 https://books.google.co.ke/books?id=l2X0AwAAQBAJ&pg=PR3&source=gbs_selected_pages&cad=3#v=onepage&q&f=fal se (accessed on 20 July 2017)

The National Broadband Strategy 2018-2023

Figure 2: Broadband Strategy Implementation Focusing on Demand and Supply

Source: Adapted from Malaysian Broadband Initiative. http://www.skmm.gov.my/Sectors/Broadband/National-Broadband-Initiative.aspx. Accessed July 20, 2018

Understanding that supply alone is insufficient, an effective strategy to encourage demand with the emphasis on Awareness, Attractiveness, Affordability and Security Online as part of the promotion of broadband should be adopted. The approach for creating awareness will be through continuous government and private sector involvement in the awareness programs and capacity building initiatives. In order to improve the attractiveness of online content, efforts should be focused to enhance and promote e-Government, e-Education and e-Commerce; and the creation of local content including content local languages. It is recognized that broadband is essential to all socio-economic endeavours. Increasingly, all essential services are only being accessed through broadband where e-commerce is becoming a major method of delivering business services hence the need to deploy broadband and create conditions that promote its demand and use by all citizens without discrimination. In this regard, affordability of broadband is imperative if citizens have to harness its full potential. The high cost of devices also constitutes a barrier to the uptake of broadband. 1.7 Equity and Social Inclusion This strategy is based on the constitutional underpinnings of specific application of rights proposing initiatives focusing on children, persons with disabilities, youth, minorities and marginalized groups and older members of the society. The strategy further, includes initiatives on digital literacy, access devices and material for Persons Living with Disabilities (PWDs), affirmative action programs for (underserved/unserved areas) and programs aimed to ensure that all persons including older members of the society and women fully participate in the affairs of the society.

The National Broadband Strategy 2018-2023 Upon identification of existing barriers, efforts have been made to include persons living with disabilities (PWDs) in broadband. However, with the gaps in current efforts, there is a need to address accessibility for persons with disabilities. In this regard, various needs must be met if we are to accelerate the broadband adoption path for people with disabilities. Specifically, the government will2 ▪ Improve implementation and enforcement of existing accessibility laws; ▪ Gather and analyze more information about disability-specific broadband adoption issues; ▪ Coordinate accessibility policy and spending priorities; ▪ Update accessibility regulations; ▪ Update subsidy programs and ensure the availability of training and support; and ▪ Update its approach to accessibility problem-solving.

Among other actions, this effort will involve the modernization of broadband accessibility laws, rules, and related subsidy programs by the CA, the Judiciary and Parliament.

1.8 Assumptions There are a number of prerequisites for the successful development of broadband and realization of its potential. The success of NBS 2023 is premised on the following: (i) The government will create a policy, regulation and institutional framework that will facilitate the delivery and uptake of broadband (ii) A robust broadband strategy delivery governance structure will be provided to include leadership, accountability and monitoring and evaluation (M&E) framework (iii) The strategy will be private-sector driven (iv) All stakeholders will effectively play their respective roles

Figure 3: NBS 2023 Overview

2 https://transition.fcc.gov/national-broadband.../equal-access-to-broadband-paper.doc

The National Broadband Strategy 2018-2023 1.9 Outcomes of the Broadband Strategy The implementation of this strategy will result in a number of outcomes that are pertinent to the country’s development plans. The outcomes are as follows:- 1.9.1 Infrastructure and Connectivity Outcomes (i) Last mile infrastructure is provided by fixed or wireless means to achieve 95 % national broadband coverage. (ii) Fixed infrastructure is available up to the level of the ward. 1.9.2 Services, Content and Applications Outcomes There is a government bus architecture that enables all government applications to share this data. (i) There is a government data presentation standard and data classification mechanism that underpins a vibrant and effective government data digitization program. (ii) All core government data (persons, land and infrastructure, assets and institutions) is defined through a coherent legal framework that exists in accessible digital format and is well protected and maintained. (iii) Kenya’s creative economy is well-equipped through capacity building, technology, services and institutions to design, create, register, publish and market at least 100,000 digital works a year. (iv) Affordable and quality services and platforms exist to enable Kenyan businesses to quickly exploit digital technology to support their operations, strategy and marketing. 1.9.3 Capacity Building and Innovation Outcomes Kenyans have basic digital literacy where: (i) There is a mix of quality general ICT degrees, engineering degrees, and specialist ICT degrees, which graduate at least 10,000 persons every year. (ii) Affordable digital literacy program for adults is available through e-learning through cyber cafes in order to allow every adult to acquire necessary digital skills. (iii) A culture of innovation and fabrication is fostered among Kenyan youth. Centers are available to enable cost-effective access to technology, equipment and skills throughout the country. Innovators are assisted to cost-effectively protect their intellectual property. (iv) Digital education is fully integrated into the basic education system, tertiary colleges and Technical and Vocational Education and Trainings (TVETs) run local and international certification courses leading to 50,000 Kenyans achieving ICT-related professional certifications every year. 1.9.4 Devices Outcomes Every citizen has a broadband device, which also serves as an identity device. This device has the capacity to be used for information access, communication, e-learning, e-health, and emergency and disaster management. It is envisaged that the devices are assembled in Kenya and are affordable to the greater population.

The National Broadband Strategy 2018-2023 2. RELEVANCE TO NATIONAL LEGAL, POLICY AND REGULATORY FRAMEWORKS AND NATIONAL DEVELOPMENT PLANS

Though ICT and broadband is a standalone economic sector, it is also an enabler of all sectors of social, economic and political development of Kenya within the framework of ICT for development (ICT4D). The implication of this is that broadband is essentially not an end in itself but more of a means to various ends. In this regard, it is aligned with the Constitution of Kenya 2010 (Bill of rights, and administrative standards and justice), V2030 (social justice and wealth creation), SDGs3 (ICT policies and Plans) and the Big 4 agenda. It is specifically aligned to the Industry, Innovation and Infrastructure (Goal 9), which support other SDGs such as Zero Hunger (Goal 2), Good Health (Goal 3), Sustainable Cities and Communities (Goal 11), which are relevant to Government of Kenya’s Big 4 Agenda. The strategy is also aligned with SDG 4 (Quality Education) in the context of capacity building; and partnerships and collaborations (Goal 17). The strategy is also aligned with ICT policy, ICT master plan, County Integrated Development Plans (CIDPs)4 Science, Technology & Innovation Act, Industrialization Act and with the Computer Misuse and Cyber-crimes Act among others. 2.1 Big Four Agenda In order to become an information society that effectively participates in the knowledge-based economy, the availability of good quality, affordable, secure and pervasive broadband is imperative since it affects all the elements necessary for the Government to deliver development for all citizens. This strategy offers the fitting strategies for facilities to attract investment, both foreign and local, to encourage manufacturing industries, which will create new jobs for Kenyans and avail quality products for citizens.

This strategy is aimed at enabling the diffusion and use of broadband ICT in all spheres of human endeavour in Kenya, namely the political, social and economic pillars of the national development agenda – the Vision 2030 through the attendant Medium-Term Plans and other sectoral strategic plans. The strategy addresses the Big 4 Agenda of the Government by complementing the efforts that the parent MDAs are making through the infusion of efficiency by use of broadband services in the context of ICT for development (ICT4D), job creation and availing of quality and affordable products through manufacturing of devices. The strategy also brings improvements in the sector through Artificial Intelligence (AI) and Internet of Things (IoT) technologies, broadband enabled affordable housing, food security through improved broadband enabled supply chain, and Universal healthcare delivery to Kenyans through e-health. Specifically, the strategy will contribute to the realization of the Big 4 development agenda such as providing health information systems, agricultural information systems, supporting manufacturing and building sustainable cities. To this end, the following policy decisions will be implemented to realize the Big 4 Agenda: • Integrate BB in the Big 4 sectors • Funding for building of the Big 4 architecture • Farm registration and identification • Geospatial mapping of all buildings and land It is anticipated therefore that broadband will make a major contribution towards the achievement of Kenya’s Constitutional and development commitments. This strategy is, therefore, a justified candidate for substantial government and partner investment

3 Kenya made a commitment on 25th September 2015 to on implement the SDGs (see https://www.un.int/kenya/media/unga-2015) 4 It is envisaged that the CIDPs will be updated as necessary ensure implementation of NBS 2023

The National Broadband Strategy 2018-2023 2.2 Broadband Delivering the Big Four Agenda The thematic areas in the NBS 2023 have been ultimately mapped in line with the Big 4 Agenda pointing to the solutions that will be brought about through the implementation of the Strategy. An illustration of how NBS will be embedded to deliver the Big Four agenda is shown in Table 1. Table 2: Broadband Delivering Big Four Agenda Big 4 Agenda Affordable Housing Universal Healthcare Manufacturing Food Security

The national Broadband strategy

NBS Theme Infrastructure Services, Content, Policy, legislation, and Capacity Building and Finance and Privacy and and devices Applications regulation Innovations Investment Security; NBS Notes Notes Notes Notes Notes Notes Contribution Provide core - Development of Formulation of policies, -Training and education of -Providing Enact laws to to Big 4 and supporting appropriate and good enactment of laws and the Big 4 sector members incentive(s) for protect infrastructure, quality services specific development of on adoption and use of investors in broadband and end user to the Big 4 sectors regulations to guide the broadband in delivering on broadband in users, devices to - Development of secure use of the Big 4 the Big 4 enhance deliver content, applications broadband in the Big 4 -Public awareness creation -Government cybersecurity broadband in and innovative services sectors for broadband stimulus fund to and the Big 4 in the Big 4 sectors spur uptake prosecute sectors - Use of BB for smart /use of cybercrimes Provision of agriculture and broadband to smart living efficient distribution deliver the Big 4 and smart channels and market cities information Affordable housing Universal Healthcare Manufacturing Food Security • Enhance manufacturing of Broadband ready housing: Connectivity: Deliver broadband to all health Supply chain efficiency: Use the broadband devices within Have legislations for installation facilities through the NOFBI and other initiatives by Internet (broadband) to the country. This will in of cables in all modern housing the private sector. This can be done in collaboration harmonize the demand and turn have affordable to ease accessibility of Internet with KPLC as is linked to majority of the health supply sides of the food value devices in the country at home. facilities. KPI: Number of health workers/facilities chain by linking areas of using BB production to relevant markets KPI: Number of new homes with BB Applications: Avail applications (apps) and content that can be consumed by all citizens who have smart phones for healthcare

25 The National Broadband Strategy 2018-2023

Big Data analytics: data on staffing, accountability and quality can be utilized to ensure better leadership and governance of health facilities Telemedicine: to assure the population of accessible healthcare by affording them ability to consult professionals globally. Health information; use broadband in the health facilities to store and access health information including patient details and health record.

Security of housing: Ensure Monitoring of heath: Track all supply and usage of -Manufacture quality Quality of food: Verify quality of secure residences by promoting healthcare services and facilities and ensure timely products through adoption the food consumed and ensure installation of ICT security availability of all necessary healthcare (facilities of global standards for only quality foods are consumed gadgets through an affordable and services) locally manufactured ICT by the whole population. business model to avail devices devices Digital agriculture: such as the - manufacture of devices to use of IoT technologies to drive down cost and improve improve farming and food availability production - Use of BB for efficiency KPI: Number of farmers using improvement in BB/Apps manufacturing -Job creation through apps development and content creation and innovation KPI: Number of jobs in software development

In order to support the Big 4 Agenda, broadband will be promoted in these sectors and incentives provided for development of services, content and e-applications that will improve efficiency in the Big 4 sectors. It is recommended that a study be conducted to determine opportunities for use of broadband in the Big 4 sectors and appropriate incentives be provided to exploit these opportunities. This will ensure that full potential is realized in these sectors as a contribution to socio-economic transformation occurs within the life of this NBS 2023.

26 The National Broadband Strategy 2018-2023 2.3 Broadband for All For each measure, NBS 2023 envisions a Kenya where a user in the remotest part of the country can connect with other users within and outside the country at the click of a button to communicate, transact and interact over a fast, reliable, secure and affordable Internet connection. This will enable each user to receive information, access and share content, trade and socialize in addition to other services that have now become available as a result of broadband-enabled opportunities. The success of this Strategy therefore ultimately depends on the solutions and services that will be availed to the people through broadband as an enabler or gateway to the limitless opportunities that continue to spring within the fourth industrial revolution. In this regard Broadband for Wanjiku aims to among other things; • Enable more people to access and use affordable broadband • Enhance consumer choice • Complement and drive other sectors and government agendas • Increase efficiency • Provide access to global markets • Encourage innovation • Promote inclusion through technology

2.3.1 Benefits of successful implementation of this strategy If successfully implemented, this strategy will unlock vast opportunities including research, communication, networking, career development, e-commerce, socializing and innovation. A robust broadband ecosystem will enhance access to information, leverage on ICTs as enablers and drivers of the national, regional and global economic blueprints and aspirations such as Vision 2030, Big 4 Agenda, Agenda 2063 and the Sustainable Development Goals to which Kenya subscribes. Through ICTs, the government and private sector can also partner to deploy technologies aimed at increasing digital presence and boost access to services such as biometric enrolment of citizens to the National Hospital Insurance Fund for universal healthcare, creation of a central database of farmers for registration of farmers, classification of their farm products and provision of market information. Broadband will also increase productivity, and create innovation and talent hubs to stimulate growth and create employment. ICT companies can also be listed on the Stock Exchanges to boost investment while mobile commerce will be used to provide digital financial solutions and inclusion. As noted in the ITU m-Powering report 2018, it is /will be important to identify other local challenges that can be readily addressed using ICT as catalysts for increased Internet usage5 through collaboration between government, private sector, and development partners.

3 STRATEGY

The focus of this strategy is on seven thematic areas, which are Policy, Legislation and Regulation; Infrastructure and Connectivity; Services, Content, and Applications; Capacity building and Innovation; Devices; Privacy and Security; Finance and Investment; and the accompanying institutional framework to deliver the strategy. In this chapter, an examination of the strategic issues regarding broadband ecosystem development is first presented. This is followed by a presentation of the current situation and gap analysis, opportunity identification, strategic objectives formulation and lastly, an appended (Appendix) implementation plan for each thematic area.

5 https://www.itu.int/en/ITU-D/Initiatives/m-Powering/Documents/Mpowering_Report_18-00029-v2.pdf

27 The National Broadband Strategy 2018-2023 Besides the strategies that have been provided under each thematic area, other strategic initiatives under this strategy are to: • Provide incentives to encourage private sector to invest in Figure 4: NBS Thematic Areas networks across the country • • Encourage technology pilots to stimulate innovations • Encourage cost reduction through network and infrastructure sharing • Embrace public private partnerships that spur development • Provide enabling institutional, regulatory, policy and legal environment • Introduce incentives that encourage investment in high cost areas • Elaborate on the specific role of the Universal Service Fund in complementing the overall strategy • Enhance the governance and delivery structure for broadband including provision of a robust Monitoring and Evaluation for the strategy

In addition to addressing each thematic area, this strategy encompasses: (i) Program approach to broadband flagship projects implementation with clear ownership, responsibility, expected outcomes, key performance indicators (KPIs), targets; and measurements and frequency of measurement (ii) Quality, security and affordability of broadband, which addresses the demand side of broadband. (iii) Comprehensive definition of broadband for Kenya to also include quality, affordability, security, and the overarching aspirations of Kenya. (iv) Broadband for all where persons living with disabilities, minorities and the vulnerable individuals are not left out of broadband equation

28 The National Broadband Strategy 2018-2023 3.1 Policy, Legal and Regulatory Environment

The purpose of the policy, legislation and regulation (PLR) is to ensure safety and high quality of service, motivate maximum broadband coverage, inspire rich content and applications, and ensure affordability of broadband and continuous digital literacy programs that address the needs all citizens

Several legislations dealing with various issues that affect the broadband have been enacted: • Kenya Information & Communication Amendment Act 2013 • Consumer Protection Act, No. 46 of 2012 • Access to Information Act No 31 of 2016 • Computer Misuse and Cyber Crimes Act 2018

1. Current status

A number of pending broadband-enabling legislations, regulations, policy, and fundamental freedoms specific to ICT and broadband are presented in Table 2 Amendments to Copyright Act to provide for enforcement of right to copyright where infringement occurs online (point out the gaps to be addressed to make it more supportive of BB) Table 3: Fundamental Freedoms and Pending legal instruments

Pending legislations, policy and Fundamental freedoms regulations: • Right to Information: Access to information Act 2016 • Data Protection (Article 31 of • Data Protection and Privacy: Data Protection and Privacy Legislation; pending but committee has been the Constitution) set up • Cyber security • Freedom of Expression: Media Council Act 2013, • Critical Infrastructure (including deals with protection of freedom of speech of media domain names for essential • Right to Security: Computer misuse and cybercrime services) Act 2018; deals with criminalization of cyber violations • Electronic Transactions • Sustainable Environment: E-waste regulations, pending; EMCA 2015 Cap 387; Environmental Audit & • Revised sector regulations Impact Assessment ICT policy • • Right to Property (Article 40(5)) • Online Infringement of Copyright

2. Policy for Broadband Thematic Area Policy Focus Strategy/Action Infrastructure - Affordability (i) Infrastructure sharing - Broadband as a critical infrastructure (ii)Legislation updated to include - Spectrum Management broadband and as critical infrastructure - Rural BB infrastructure (iii) Spectrum refarming (iv) Establish PPP regulations for broadband that would enable rural infrastructure operators to offer services to multiple mobile network operators.

29 The National Broadband Strategy 2018-2023

(v) Work with a range of partners, to launch initiatives focused on connecting the unconnected and under-connected such as through the use of High Altitude Platform Station (HAPS), especially in rural and remote areas to provide more affordable, fast and flexible backhaul of broadband services, and further become a key link to emergency communications in the wake of natural disasters. Services, - Quality of Service Relevant regulations to address each Content and - Affordability aspect of service and content Application - Consumer Protection - Disruptive technologies - Net neutrality - Data Protection - Electronic Transactions - Competition - Language - Child Online Protection - Digitization of curriculum - Intellectual Property Rights - Public key fields Capacity Building and - Local professional certification in (i) To revive specialized institutions to Innovation critical Broadband areas support specialized skills and - Intellectual Property Rights (IPRs) competencies required by Broadband related sectors (ii) Promote and enforce IPRs Establish connectivity initiatives aiming to lower the cost of backhaul technologies. Devices - Quality Ensure availability of genuine broadband - Accessibility access devices Privacy and Security - Infrastructure (i) Collaborate with National Police - Detection Service to secure BB infrastructure - Enforcement (ii) Promote establishment of Independent cybercrime forensic organizations (iii) Conduct education and regular awareness programs on online privacy and security to citizens (iv) International cooperation for cybersecurity management response (v) ISO 27001 certification and compliance - Integrated infrastructure development (i)Institutionalize multi-stakeholder - Special Purpose Vehicles approach to broadband development - Design, implementation, operation (ii) implement innovative models such as and maintenance (O&M), and sales Design Build and Operate (BDO) upon assessment of their merit

30 The National Broadband Strategy 2018-2023

Figure 5: Status on Policy, legal and Legislation

3. Regulations for Broadband under the NBS 2023 The following are the strategic issues with regard to law and regulation that will be addressed in this strategy: (i) Licensing and authorization frameworks (ii) Spectrum management (iii) Growth of existing infrastructure (iv) Opening vertically integrated markets (v) Network neutrality (vi) Security in cyberspace (vii) Privacy and data protection (viii) Regulation of broadband content

The following regulatory actions will be taken to support the realization the NBS 2023 vision:

(a) Licensing and authorization

To ensure technology and service neutrality except where scarce resources are involved by promoting unified licensing frameworks capable of accommodating technology and service neutrality.

The government will require compliance to security and privacy by equipment and systems as part of the licensing and authorization requirements in accordance to international standards such as ISO 27001 etc. and will continue updating the security and privacy regulations as the situation arises. With regard to licensing and authorization, the Government of Kenya will:- (i) Continually facilitate faster and less expensive deployment of connectivity infrastructure by streamlining local licensing processes and reducing other legal barriers to entry. (ii) Open up rights of way and access to facilities to remove impediments to sharing of passive infrastructure and enhance competition.

(b) Spectrum management To facilitate converged service availability and maximize value and use of spectrum by: • Ensuring flexibility in spectrum licensing and authorization (e.g. enabling platforms such as spectrum trading to enable entry of secondary markets)

31 The National Broadband Strategy 2018-2023 • Adopting flexible use rules for existing licenses • Adopting internationally harmonized band plans during allocation and assignment of spectrum • Use of market mechanisms to assign spectrum • Continually make spectrum charging responsive to the market realities and in line with best- practice Around the world, spectrum authorities are making decisions about how best to put spectrum to work, driving technology and investment across the full range of connectivity platforms and services including end user broadband access, backhaul, broadcast, fixed terrestrial, fixed satellite and mobile services. Regarding broadband policy reforms, will adopt the principle of flexibility underpin spectrum licensing, authorizations, and rules of use. These principles include: (a) Ensure an abundant supply of spectrum is available: An abundance of spectrum will reduce service provider barriers to entry and increase competition and innovation. In this regard, the Government of Kenya will re-evaluate spectrum allocation periodically to ensure that it is well utilized. (b) Promote flexible use: The Government of Kenya will ensure that the spectrum policies are sufficiently flexible to allow spectrum use by multiple parties in unserved and underserved areas.6 The policies will promote flexible use of spectrum and sharing across users and platforms, such as mobile, satellite, and new technologies like high altitude platform stations (HAPS) and Terragraph will significantly increase the spectrum available for broadband. (c) Balance Licensed and Unlicensed spectrum: Spectrum policy should support both licensed and unlicensed allocations and promote technology neutrality. The value of licenses fees will ensure appropriate investment incentives must be balanced against circumstances where the case for deployment is less attractive. (d) Promote Both the Capacity and Coverage of Networks: the Government of Kenya will pursue policies that not only enhance the capacity of networks but also expands their coverage to underserved areas and populations. (c) Growth of existing infrastructure To promote competition and entry whilst maintaining incentives for investment in new infrastructure and innovation.

In this regard, the government will: - (i) Make policies, regulations, enact legislations and provide incentives for private sector investment in the ICT sector (ii) Promote infrastructure sharing (e.g. through joint ventures) in order to reduce capital expenditures and operating expenses associated with rollout and operation of broadband. (iii) Continually monitor and conduct market study to ensure market efficiency by ensuring that there is no market failure.

6 See Appendix I to these submissions

32 The National Broadband Strategy 2018-2023

To promote innovative business models which attract investments along the broadband value chain by defining various markets in the broadband value chain such as physical layer, active layer and service layers.

Open Access Open access is ‘the possibility for third parties to use an existing network infrastructure to provide services.’ Open access is essential in the case of publicly funded national broadband networks, and generally required wherever there is the likelihood of economic bottlenecks preventing competitive supply. There is an emerging regulatory consensus that there should be open access to national broadband infrastructure. In this regard, regulatory action for broadband networks will focus on ensuring access on fair, reasonable and non-discriminatory terms, rather than on encouraging infrastructure competition. Open access will especially be mandated where broadband and next- generation access roll-out is supported by public funding. In such circumstances, mandated open access will promote network investment, prevent the uneconomic duplication of facilities, and strengthen competition. Though monopoly on infrastructure, particularly in rural areas and developing countries may seem sensible, this area will receive necessary regulatory intervention in line with market development to ensure that such monopoly does not create bottlenecks to development of broadband in Kenya.

(d) Cyber security To revise and reform governmental and private sector safeguards to promote trust, security, privacy and consumer protection in ICT services within the first year of the NBS 2023 through the following strategies:-

(1) Retroactive Security Measures To react to security issues after the fact by focusing on early detection and response.

(2) Regulatory actions to ensure security (i) Increase oversight and regulation of computer and communications technologies by strengthening both “hard” and “soft” security and privacy measures. (ii) Encourage institutions and companies to conform to best practices (iii) Mandate a safety-culture approach to cybersecurity and privacy (iv) Obligate companies to provide security and privacy mechanisms in their products

33 The National Broadband Strategy 2018-2023 (v) Interpret laws (e.g. torts) to include increased penalties for cybersecurity breaches (vi) Make the nodes of communications networks accountable for their security provisions (such that administrators of these nodes can detect vulnerable or malicious nodes and punish or isolate them as a deterrent measure) (vii) Use of economic incentives to promote security (e.g. requiring that data breaches and non- compliance with best security practices be reported).

(3) Cybersecurity Research (i) Studies on how people apply or circumvent security systems in order to design more rational/responsive systems (ii) Metrics for levels of security and values of assets to inform level of security necessary vis-à-vis absolute security (iii) Research to counter the innovative capabilities and abilities of cybercriminals who are ever a step ahead

(4) Digital Literacy regarding cyber security

To educate users on digital vigilance including password use and detection of potential threats.

(5) Forms of Cybersecurity Measures

(i) Hard cybersecurity. Technical security mechanisms that determine the predictable functionality of an electronic system with respect to its proposed utility. This includes encryption, authentication; measures to protect confidentiality, integrity and accessibility that are innate to the technology itself.

(ii) Soft cybersecurity. These are legal protection mechanisms that may include liability rules for product failures (for instance, the burden of proof where an illegitimate transaction has taken place), or measures in the event that a crime has been committed.

(e) Network Neutrality

To formulate regulations to govern Internet content in the framework of network neutrality.

Network neutrality is critical to keeping the Internet free and open for everyone. It ensures that providers of Internet access services do not leverage their control of the underlying network infrastructure to interfere with consumers’ ability to access the online content, services, and applications of their choice. Maintaining strong net neutrality protections in Kenya will ensure consumer choice while preserving the ability of the entire Internet ecosystem to innovate. In order to ‘formulate regulations to govern Internet content in the framework of network neutrality,’ the following net neutrality principles should apply: (a) No Blocking or Throttling: Providers of Internet access should not be permitted to block, slow, or degrade people’s ability to use, send, receive, or offer any lawful content, application, service, or non-harmful device of their choice on the Internet. (b) No Paid Prioritization or Fast Lanes: Providers of Internet access should not be permitted to enter into arrangements that provide certain content at faster speeds or require content providers to pay in order to provide a certain quality of service to end users. (c) Reasonable Traffic Management: Any network management practices should be based on objective technical considerations, not commercial considerations, and be tailored to achieving a legitimate network management purpose. Any such practices should not result in preferential treatment of the Internet access provider’s affiliated content or services, or the blocking or throttling of specific classes of content or services.

34 The National Broadband Strategy 2018-2023 (d) Technological Neutrality: Providers of Internet access should abide by these net neutrality principles regardless of how Internet access is provided, be it via wireless or wireline. (e) Transparency: Providers of Internet access should be transparent about their network practices and the speed of the traffic that flows over their networks.

The government will permit zero-rating programs for the benefit of consumers and connectivity because free access to popular sites on the Internet will encourage more people to sign up for data plans and provide greater freedom to explore local content. This increase in demand for local content spurs local businesses and entrepreneurs to create new online products and services.

(f) Privacy and Data Protection

Individual Participation • Emphasizing informed consent where consumers freely give specific and informed indication of their agreement to data collecting and processing activities Requiring increased transparency of data collection and data processing • Consumers must be given sufficient information to make informed choices regarding the collection and use of their personal data. This may be addressed by facilitating standard privacy notices drafted using plain language or by educating consumers on privacy matters. • Transparency can also be enhanced using policies such as data breach notifications Increasing responsibility of data controllers • Mandate Data Collectors (DCs) to incorporate substantive privacy protections into their practices, including data security, data minimization, sound retention practices, and data accuracy as a right for consumers including maintaining comprehensive data management procedures throughout the life cycle of their products and services Raising Awareness • Especially among younger users, regarding the impact of broadband and new technologies on personal privacy International Cooperation • Increased international cooperation in the enforcement of privacy laws and data protection Encryption • Building capacity on Encryption methods • Advocate for Policies Requiring messaging and communication channels to use Encryption • IoT Devices and other Internet enabled devices to support Encryption by default

(g) Regulation of Content

To make regulations regarding content as follows:- (1) Freedom of Expression • Content regulation, including surveillance and monitoring of Internet use, needs to take into account the standards set by international human rights law • The full guarantee of the right to freedom of expression must be the norm, and any limitation should be considered as an exception, and this principle should never be reversed (see the report by the UN Special Rapporteur on the Promotion and Protection of the Right to Freedom of Opinion and Expression)

(2) Intellectual Property Rights (IPRs) • Enact graduated response (three-strike laws) where users who infringe copyrights online would be given first and second warnings and upon a third infringement, they

35 The National Broadband Strategy 2018-2023 could be subjected to a fine, jail time, and suspension of their Internet access (based on the attaching judicial processes). Further, the government will ensure a robust commitment to competition investigations and enforcement aimed at keeping markets open to new competitors and avoiding concentration. • Have mechanisms through which copyright holders (CH) can work with ISPs to curb copyright infringement (e.g. upon detection of an infringement, the CH contacts the ISP in control of the infringing IP address where after the ISP traces the customer directly and warns the customer e.g. that copyright infringement is a violation of the ISPs terms of service that could lead to disconnection). The requirement to remove copyright infringing content will be subject to the verification of the Copyright by the Kenya Copyright Board (KENCOBO).

(3) Regulating Specific Forms of Content This will cover regulation of content for protection of minors, prevention of vices, and protection of national security. In so doing, the government will conduct studies and make regulations, self or government, that will be in line with best international practice and will implement a regulatory regime for content that distinguishes between commercial advertisement or branding and the free expression of political, social or economic commentary by natural persons. Specifically, (i) Content regulation will take into account the standards set by international human rights law, and that a full guarantee of the right to freedom of expression must be the norm in any form of content regulation, and that any limitations should be considered narrow exceptions to this norm. For Self-Harm content the government may for instance consider; prosecution of the author, use Internet platforms to offer advice and campaign against damaging content, self-regulate through content screening and purging,. Other include; prioritizing the protection of users beyond commercial interests including liability laws for content, legal duty of care to specific groups including children and vulnerable adults and classification of and censorship on harmful content defined under law including content promoting fake news, hate speech, extremism or content causing mental health problems. (ii) The regulation of online content including for OTT, and communications applications will also recognize the critical importance of those services in fulfilling the NBS’s identified outcomes, including of driving broadband adoption and growing Kenya’s economy. Disruptive as OTTs are, the government remains proactive in ensuring that these technologies do not offend the provisions of the Constitution and best practice. Through Consumer Protection and Competition Laws, the concerns raised can be addressed as and when they arise through the authorities mandated including the Courts as the government works towards effective regulation of OTT service providers who currently enjoy the absence of specific laws that regulate their operations. 3.1.1 Gaps

The identified gaps include lack of synchronization of operations by government entities and authorities handling infrastructure rollout, infringement of fundamental freedoms, sector guidelines not embedded in regulations such as branding of phones, lack of technology ready devices, such as 4G compatible devices, Persons with disabilities (PWD) not included in broadband, e-waste regulations not yet enacted, depleted resources which require infrastructure sharing, expensive ICT services and duplication of infrastructure; and inadequate focus on broadband in the current national ICT policy, legal and regulatory framework. Specifically, the current policy, legal and regulatory

36 The National Broadband Strategy 2018-2023 framework needs to more exhaustively address the issues of access to, use of and benefit from broadband ICT services and security of broadband from both the perspectives of supply and demand. Further, the institutional framework for the delivery of broadband needs enhancement with a view to strengthening it. Inadequacy of appropriate legislation for broadband infrastructure should also be addressed, e.g., with regard to treating broadband as critical infrastructure 3.1.2 Strategic objectives • To elevate broadband to critical infrastructure status through legislation • Implement Infrastructure sharing regulations; • To implement Cyber Security laws; • The Inclusion of persons living with disabilities (PWDs) in broadband, such as through audio signals; • Review of Tax policies, including tax exemptions on broadband devices; • Development of a plan for new technology such as the Fifth Generation network (5G) after Radio frequency meeting (the World Radio Conference 2019 schedule for in October 2019) by 2020; further the testing of 5G technology should be underway presently ahead of 2020; • More ownership and responsibility by government agencies; • Environmental impact assessment and Audit to address environmental impacts of broadband; • To harmonize legislation across all the Counties and National government including wayleaves and associated physical infrastructure to avoid duplicated charges, and collaborative planning, deployment and maintenance of broadband; and, • Development and enhancement of Data Sovereignty law - e.g., Government to define standards and policies to be met to store, process and transmit ‘Kenyan’ Data. 3.2 Infrastructure and Connectivity

Though the private sector has made great strides in the development of infrastructure7, there are still opportunities for government intervention where purely commercial considerations do not suffice. It is also noted that direct participation by the government in the infrastructure development should be targeted at the discernible gap areas considering that connectivity has progressively become affordable as a result of competition and availability of alternatives. In the past, the government has invested over 200 million USD in NOFBI on the national backbone spanning 6,400 km and touching all 47 counties. In addition, Satellite will be deployed where terrestrial systems are not feasible; the approach is to use multiple technologies to deliver broadband provided they are the most cost- effective for a particular site. This notwithstanding, spectrum costs and the process of acquiring can

7 For example, KPLC has over 2500, Liquid 4500, and Jamii over 2500 of optical fibre infrastructure length

37 The National Broadband Strategy 2018-2023 constitute big barriers to the rollout of wireless infrastructure and need to be addressed. Further, the overall cost of business in deploying and running infrastructure is a challenge due to lack of energy and lack of proper road infrastructure, wayleaves and inadequate security of this infrastructure resulting to vandalism and/or sabotage.

Today, nearly four billion people are still not connected to the Internet. Among those that have broadband connectivity, many are under-connected. Connecting the unserved and underserved populations is a complex effort that requires not just bringing network infrastructure to more people, but taking additional steps to solve the affordability and relevance challenges that also undermine access.

The gaps, opportunities for improvement, strategic objectives and an implementation plan for infrastructure and connectivity under this Strategy are as follows: 3.2.1 Gaps • Quality of broadband services exhibit low speed connections and poor reliability • Rural areas are lacking in coverage • Low geographical coverage of broadband services; for example, 50% of locations have no 3G services; further, 83% of the land mass lacks broadband services. In addition, fiber optic cables only cover 60,000 km (17% land coverage) • Parallel installations due to lack of coordination of infrastructure development which have resulted in reducing coverage, constraining investment in broadband and reducing ability of consumers to afford broadband • Lack of sharing arrangement of critical infrastructure • Low access to and uptake of broadband services (penetration of 39.7%) • Spectrum Licensing framework stuck in the pre-broadband era

Figure 6: Status on Infrastructure and Connectivity

38 The National Broadband Strategy 2018-2023 3.2.2 Opportunities • Increase broadband penetration in rural areas for socio economic development and transformation • Increase broadband connection to the 47 Counties • Stimulate demand for broadband services and entrepreneurships • Increase investment in broadband services to realize better connections and speeds by providing incentives for investors • Increase the number of collaborations for broadband infrastructure development • Update the spectrum management and licensing framework to take care of broadband and emerging services

Figure 7: Kenya Broadband Penetration and Subscription

39 The National Broadband Strategy 2018-2023

Figure 8: Mobile Technology Coverage in Kenya

Source: CA operators return

5G Networks 5G innovation will require investment from telecoms operators, and the return on this investment will, in part, be driven by consumer demand for new innovative services. Internet and online service providers have a role to play in driving demand, provided that the regulatory environment does not create artificial barriers to the dynamism of the Internet ecosystem. 5G will be essential to meet business and consumer demands by providing faster speed broadband. In addition, 5G networks will likely also facilitate new use cases, such as the Internet of Things (Internet connected devices), as well as broadcast-like services and lifeline communication in times of natural disaster8. The Government will identify incentives that will attract investment in and demand/use of 5G networks. 3.2.3 Strategic objectives • Treat broadband as critical infrastructure, sensitize everyone on the importance and use to elicit demand and uptake • Harmonize development of infrastructure to reduce duplication and increase coverage • Increase coverage and connection to public institutions, including schools, hospitals, and Government agencies digitization • Extend Broadband Connectivity to cover all classified roads (A, B and C roads) • Ensure open access to infrastructure for all • Increase awareness of broadband to County governments, and use of broadband services • Improve 3G and 4G wireless connections • Deploy 5G network • Use USF to provide broadband in underserved areas like rural areas • Review spectrum allocation and pricing mechanisms to make it more market responsive

8 NGMN 5G Initiative White Paper https://www.ngmn.org/uploads/media/NGMN_5G_White_Paper_V1_0.pdf Accessed on 24 May 2017.

40 The National Broadband Strategy 2018-2023

• Introduce tax rebates/subsidies for deployment of broadband in marginalized areas to stimulate investment in and uptake of broadband for specific projects addressing needs in this areas • National Government will facilitate access to national optical fiber broadband infrastructure (NOFBI) on an open access basis • The national government to take charge of all supporting infrastructure including ducts and wayleaves • Government will from time to time address spectrum needs according to technology changes and service demand 3.2.4 Affordability Improving connectivity across Kenya means pursuing policies that improve the affordability and availability of the Internet. In 2018, 1GB of data cost a Kenyan mobile user 4.01% on average of Gross National Income (GNI)9, which is double the UN Broadband Commission’s Sustainable Development 2025 Target of “1GB of mobile broadband data available for 2% or less of GNI per capita.” Other sub- Saharan African nations like Ghana and Nigeria are actively working towards achieving this affordability target. This strategy will make broadband affordable to the citizenry in line with the recommended UN broadband commission level of 2% or less of the GNI per capita. (i) The government will implement policies that promote the sharing of passive infrastructure and spectrum resources that will help to achieve affordability goals without sacrificing the benefits of competition and innovation. (ii) ‘Open Access,’ including the sharing of passive infrastructure can also enhance competition10 and drive prices down. (iii) The government will use fiscal incentives on devices to have more impact on affordability and access to broadband.11 (iv) Public private partnerships will be promoted as one of the tool to help facilitate the sharing and expansion of infrastructure in high cost areas

9 2018 Affordability Report, Alliance for Affordable Internet (A4AI) 10 2018-2023 NBS p.36

11 Kenya has shown the impact that tax reductions on devices can have when it removed VAT on devices in 2009. This led to a 200% increase in device sales and contributed to voice penetration jumping from 50% to 70%. While Kenya has since re-applied VAT to devices, countries such as Ghana and Côte d’Ivoire have taken learnings from Kenya and reduced either the import tax or sales tax on devices.

41 The National Broadband Strategy 2018-2023 3.3 Services, Content, and Applications

In the context of broadband, services can be defined as professional facilities designed for technology application by enterprises and end users. Technology services provide specialized technology-oriented solutions by combining the processes and functions of software, hardware, networks, telecommunications and electronics.

“A means of delivering value to customers by facilitating the outcomes customers want to achieve without the ownership of specific costs and risks.” ITIL

A service can thus be defined as the act of supplying a need or content through the use of technology. This NBS focuses on how services and content are offered other than what is being offered.

Services under broadband • Voice • messaging • Data • Value Added Services (VAS) -news, heath, farming, education • Government services • Mobile money • Cloud services • Co-location • OTT services (Facebook, WhatsApp, twitter etc.,) • Video conferencing • IoTs

Over-the-Top Services As the need for more Internet-based services increases, so does the demand for broadband Internet. Over-the-top services (OTTs) continue to grow in popularity and constitute a fundamental broadband issue. On one hand, the demand side experiences exponential growth of OTT services due to the expanded scope of services including OTT Commerce; Jumia, Alibaba, Amazon, OTT Communication; chat applications such as WhatsApp, WeChat, Facebook Messenger, voice calling and video chatting services such as Skype and FaceTime, OTT Media; video streaming services such as Netflix, YouTube, while the supply side, most especially the traditional service providers frown at changing economic landscape of the markets. Essentially, the service providers have to continuously invest in expanding the mobile and fixed networks whereas the OTTs, which are largely unregulated, ride on these networks virtually with minimal investments in the local markets. In between, the regulator as an impartial arbiter has to mediate the disruption by ensuring sustainability of the emergent ecosystem. The regulatory obligations of licensing, market accessibility, taxation, quality of service, pricing, interconnection, net neutrality, infrastructure obligations and privacy become ever essential. This strategy recommends the creation of a regulatory framework that accommodates both existing providers and facilitates competitive entry of new players to spur innovation, enhance consumer choice, ensure quality of service, guarantee the security of users, and make services affordable among other drivers of broadband uptake and encourages competition. The government shall further consider

42 The National Broadband Strategy 2018-2023 potential human rights –restricting effects of Terms of Service (ToS) for particularly dominant web- based services and will remain proactive in ensuring that these technologies do not offend the provisions of the Constitution and best practice. 3.3.1 Gaps A review of NBS 2107 revealed that services were expensive, out of reach for some customers and in need of quality improvements. Content and Applications including those specifically necessary for the Government’s Big Four agenda focus areas are necessary. The target to digitize core government registries including the development of County Government management information systems has not been achieved while payment services in majority of the counties are still manual. Similarly, the target to increase local digital content was 75% for local languages on online content, 20% for websites in local languages and 20% for online educational programs; however only 40% local broadcast content has been achieved while the other targets were not achieved. There is therefore, lack of digital content and applications that have local relevance, which is a major hindrance to broadband uptake.

3.3.2 Opportunities The opportunities available in the services, content and applicators include promotion of content development through incentives, aligning content and applications with development sector needs and conducting research to come up with innovative products and services

Figure 9: Status on Service, Content and Application

3.3.3 Strategic objectives Consistent with the identified gaps and available opportunities, the following strategic objectives will be pursued to improve the status of Kenya’s broadband with regard to Services, Content, and Applications. • Undertake research and create innovation in the field of Applications and Content Development • Enable profitable value chain for content, application developers, marketers and innovators. • Endeavour to have rich multicultural and multilingual Kenyan content in cyberspace.

43 The National Broadband Strategy 2018-2023

• Seek to avail digital information that supports an effective e-commerce, logistics and supply chain ecosystem in Kenya. • Provide a robust commitment to competition investigations and enforcement aimed at keeping markets open to new competitors and avoiding concentration. • Accelerate promotion of e-learning – e.g.by implementing schools connectivity program • Promote universal access to digital content and services • Promote digital literacy programs • Put in place an open access policy to ICTs’ and Digital Content for e-government services in the delivery of public service • Promotion of emerging technologies in Fintech (Blockchain, Mobile Money, Infosec, Data Science/ Big Data) • Promote provision of quality, affordable, accessible and relevant broadband services to all citizens • Provide targeted incentives to address critical areas of BB that are still underdeveloped and which not be attractive for investment from private sector • Increase awareness and demand for broadband services • Ensure sustainability of broadband content • Protect consumer interests and ensure security in accessing broadband services While details of implementation actions and outcomes on broadband services are presented in Appendix I-3, similar action plan for Content and Applications if found in Appendix I-4

3.4 Capacity Building and Innovation The digital world holds tremendous promise for the society. Going online can offer access to boundless beneficial information, facilitate new ways of interactive learning, and provide for enriching life experiences and foster meaningful cultural exchanges. From education, health, agriculture,

government services, expression to recreation, citizens are increasingly empowered, and even expected to exercise their rights online. The digital future may look bright, but it is far from guaranteed without effective capacity building initiatives and awareness campaigns in ICT.

44 The National Broadband Strategy 2018-2023 This strategy explores the ways in which public and private actors can seek to improve awareness and build capacity on broadband access among the citizenry, and thus ensure equitable access to broadband for all in order to impart the knowledge, skills and experience needed to fully exercise and exploit the digital opportunities available online. Also proposed are specific strategies to develop high- end technical skills to support the broadband eco-system in Kenya. 3.4.1 Gaps • Limited awareness of broadband services • The curriculum in schools and tertiary institutions is not aligned with the awareness and skills requirements of broadband/ ICTs • Lack of synergy and collaborations between implementing agencies • Inequitable access to technology • Shortage of appropriate skills • Inadequate relevant local content • Inadequate training for new graduates • Limited funding for skill development 3.4.2 Opportunities for improvements Despite the existing gaps in the available technical and related capacity for broadband, there are opportunities to further enhance capacity and innovations in the broadband arena; these include: • Leveraging on existing infrastructure to deliver broadband • Expansion of resources centers • Re-skilling the existing workforce on emerging technologies, trends and Open Internet Standards. • Partnerships with the robust private sector and training institutions • Active involvement of community leaders, champions and members who understand local perspectives in creating ICT training programs and curricula that support development of talent within communities for broadband deployment. • Initiate mechanisms that promote peer to peer learning opportunities to facilitate knowledge exchange among communities such as establishment of a national community networks development program in collaboration with strategic partners to develop capacity, provide guidance, mentorship and handholding for startup community networks to lower the risk factors. • Create strategies to encourage local businesses especially in rural and underserved areas to adopt use of ICTs. This can be done through harnessing the power of community led initiatives to help spread interest and uptake. • Introduction of courses at higher education institutions that teach and promote the development and use of Open Internet Standards so as to encourage adherence to globally accepted standards in innovation and design of devices or software. • Skilling of policymakers through inter-ministerial/agency cooperation, in partnership with private sector and civil society, to ensure that public servants are able to engage and implement recommendations arising from the growing evidence-base of challenges and opportunities to realize this strategy’s objectives, and a vibrant digital economy • Mainstream gender-responsive approaches to capacity building and innovation • Support bottom-up capacity building initiatives by groups and organizations working within communities, who are in a strategic positions to design, roll out and implement programs that are context-appropriate • Kenya Education Network (KENET) to provide training in Internet Protocol version Four (IPv4) and IPv6 and related Internet resources training. It will also lead ICT/ broadband research, innovations and training in broadband; and develop ICT curricula. 3.4.3 Expected outcomes By implementing appropriate strategies, the expected outcomes in this thematic area are:

45 The National Broadband Strategy 2018-2023

• Increased awareness of ICT and broadband services including online security • Increased digital literacy of the general citizenry • Enhanced high-end technical skills • Improved access and efficiency in delivery of e-Government services • More informed citizenry on existing legal policies and regulatory frameworks • Increased innovations that leverage on emerging technologies Strategic objectives and an implementation plan for the CBI thematic area is presented in Appendix I-5. Figure 10: Status in BB Capacity Building and Innovation

3.4.4 Broadband Innovations and employment projects In order to support socio-economic development opportunities for ‘digital jobs’ online jobs will be created and innovations promoted through the Community Innovation Hubs (CIH) project. This will ensure that the creation of youth employment and creation of innovations that will be used to support the Big 4 Agenda program and projects such as e-agriculture applications, e-health among others. In this regard, broadband innovation and employment creation projects will be implemented; a listing of possible innovations and digital jobs is presented as Table 4.

46 The National Broadband Strategy 2018-2023

Table 4: Broadband Innovations and employment projects

Project Specific projects Beneficiaries Value to society Ajira Digital A. Online Training Digital Nation Africa Universal to anyone 1. Expansion and creation of skills to users on This is a platform where registered users can access with an email emerging technologies. online learning on new technologies. It also provides job address and can 2. Creation of innovative solutions through mobile opportunities that match the user experience and skill. access Internet apps. https://developer.ibm.com/africa/ 3. Provision of learning opportunity and knowledge sharing with students and youth in learning institutions Core Certifications Learners interested 1. Improve communication and writing skills in on improving their today’s workplace This is a program aims to equip learners with communication 2. Accelerate business growth through digital communication and writing skills, basic conversational skills and enhancing marketing and enhanced online presence skills and digital literacy skills. The courses will be offered their IT skills 3. Help people to develop new skills and take by private sector such as Alison.com and Google. advantage of all the social and economic opportunities that come along with such skills Admin Support + Customer Service Universal to all Creates professional office workers with enhanced communication skills This offers training on various ICT skills including Windows XP, Office skills and Email Etiquette IT & Networking IT professionals, Enhanced skills of ICT professionals and knowledge Web designers and sharing in the field. Online course to provide experience on Networking, learners interested TCP/IP and Unix on IT and networking Web, Mobile & Software Development. • Individuals with 1. Improvement on the existing skillsets of IT basic knowledge in professionals on the programming languages. Short online courses on programming languages such a programming 2. Creation of employment through creation of Ajax, HTML 5, Java, xhtml and Android. languages and web blogs that facilitate knowledge sharing and developers online marketing. • Students interested on setting up blogs Design and Creative SMEs and Enablement SMEs and MSMEs to market their entrepreneurs business through the digital network Online course on graphic and Web designing. Learners with interest on graphic design knowledge

47 The National Broadband Strategy 2018-2023

Sales and Marketing SMEs and business 1. Enhanced business growth through effective owners marketing strategies. Online course to enhance skills of learners to 2. Creates a competitive market place implementing marketing strategies 3. Creation of global presence of businesses Accounting Learners interested Enhances financial management by startups and in accounting entrepreneurs The course provides learners with guidance on book knowledge keeping and accounting SMEs and business owners B. Job Platforms Online Work Public Creation employment as well as enable individuals to own online working accounts hence being self- Ajira digital provides various online job platforms through employed. which users can access working accounts. The online work accounts include; Niko Job, EVA Virtual Assistant, Tuko Works, Kuhustle, Crowdsource Africa, Cloudfactory, Freelancer, Upwork, iWriter, Upwork, Peopleperhour, MachineDesign, Cadcrowd, WordPress, Metafilter, Gigster, Problogger among others12 Studio Studio Mashinani is a project targeting the Youth of Youth Provision of opportunity and platform for the youth to Mashinani Kenya to show case their talents in Performance Art. showcase and nature their talents. Currently the government has set up four studios13 Y254 This is a channel with an online presence that presents Youth 1. Facilitation of promotion of local music and entertainment content that has a particular focus on entertainment content. Kenya's Youth. In addition, Y254 will also publicize original music and entertainment content created by 2. Marketing of startup artists and enhances Kenya's Youth working together with KBC through Studio their skill and experience in the sector. Mashinani. Constituency These are innovative hubs will be equipped with Internet Public The hub enables the public to access online jobs and Innovation access and digital devices to enable the youth access allow them obtain agribusiness and micro finance Hubs (CIH) tools to innovate and market creative ideas online to information. enable them earn income. Currently the Government has set up innovation hubs in 20 Constituencies14 and intends to upscale this in all the 210 Constituencies in a bid to transform the country into an information society and prepare citizens for a digital economy.

12 https://ajiradigital.go.ke/guides 13 https://ajiradigital.go.ke/support_centers 14 https://ajiradigital.go.ke/support_centers

48 The National Broadband Strategy 2018-2023

3.5 Broadband Devices

Broadband entails Internet access through portable devices such as smartphones, PCs and tablets. It can also include customized devices such as Police terminals, and other smart connected devices such as Internet Protocol Televisions (IPTVs), wearable’s and other IoTs. Important considerations for selecting the most cost-effective and suitable device for an intended purpose include, total cost of ownership (TCO) which encompasses repair, maintenance, power supply and useful life. Access to online content and essential services such as agriculture or health that can improve citizen’s lives in line with the government’s Big Four strategy requires access devices, whether individually owned, shared or public.

With an estimated fixed and mobile broadband penetration rate of 2 subscriptions per 100 people in 2010, Kenya still has significant progress to make with respect to broadband uptake15. Device prices are not getting lower, whilst the low-end devices are of low quality. Government use of devices has been on the increase both in public offices and in schools with the introduction of the digital literacy program (DLP) but there are still limited devices in health facilities and within the Police. Despite the DLP, efforts to promote local manufacturing of devices have not been sufficiently successful.

It is equally important to determine and understand the potential physical and psychological negative effects from device usage, especially on children and to identify avenues for effective management of electronic waste considering the rising number of these devices. 3.5.1 Gaps and Opportunities Table 5: Gaps and Opportunities for Broadband Devices

Attribute Gaps Opportunities Affordability 40% of subscribers do not have smart Reduce costs, provide incentives to enable service phones retailers provide payment by installment Access There are currently 64 libraries and 11 Leverage NOFBI to establish Wi-Fi points; and CIH that provide access points expand public access points with high-speed nationwide broadband Government 17000 primary schools have received Provide devices for secondary schools and Use tablets; 1,000 secondary schools have increase devices at primary schools; devices. Only 8,000 modern devices Provide devices for health facilities; for police, most still using old devices if Provide devices in police stations and for police any and few in police stations. Few officers devices in public health facilities. Adoption Limited use of local content and still Provide training and awareness on benefits and low uptake of devices in rural areas; no uses of broadband; understand health impacts of awareness off health impacts of devices devices

15Broadband In Kenya, 2011. Build It and They will come. Information for development Program. https://www.infodev.org/infodev-files/resource/InfodevDocuments_1108.pdf

49 The National Broadband Strategy 2018-2023

E-Waste Only one recycling center in Kenya Establish local recycling facilities in PPP; Provide which mostly exports for overseas incentives for take-back of devices recycling Counterfeit Large number of counterfeit devices in Use rebates to reimburse legitimate devices; the market establish certifications for retailers; expand phone testing Local Assembly Local assembly of DLP but no Develop feasibility study to attract contract manufacturing or ICT supply chain manufacturers New Devices Few IoT or customized devices Drive the use of IoT, support development of local currently in the market or in use IoT devices, and drive the use of customized devices to aid specific groups of users

The expectation under this thematic area is that every citizen will be able to afford a broadband device for use in all socio-economic endeavours: learning, access to financial services, access to health, and for e-commerce and for entertainment. The following is a summary of the current status of broadband devices, institutions that involved, KPI availability, required policies and proposed program to ensure that devices are accessible to all.

Figure 11: Status on Broadband Devices

3.5.2 Strategic Objectives • To promote access to a broadband enabled device by all citizens in order to access e- government services. • To enable public sector to work efficiently by providing access to devices in government offices, educational and health facilities, as well as when working outside of an office, such as public security. • The Government will develop a framework for security of IoT devices based on best-practice • To increase demand devices. • To establish a local industry for device manufacture, maintenance and recycling, this will create jobs and address e-waste issues. • To ensure availability of standards based devices in the market.

50 The National Broadband Strategy 2018-2023

Table 6: Broadband Devices Initiatives and Outcomes

Issue Initiative Outcome

Cost of Zero-rate Broadband devices to increase affordability Increased ownership of devices Broadband Establish partnerships with vendors, operators and Increased ownership of smart financial institutions for bulk purchasing and low-interest digital devices loans (e.g. SACCOs) and purchase contracts for devices (including government employees) Access Increase number of devices in libraries (and increase Increased access to broadband broadband speed and reliability) Establish Public Access Points with devices at Sub-County Increased access to broadband offices Establish Public Access Points with devices at Increased access to broadband constituencies, utilizing educational, health, post office facilities Government Ensure every education facility has devices; each student Use of Broadband to improve use should be able to use a device at least once per week education preferably with keyboards for secondary and above. Each teacher to have a device Provide devices for health facilities and every community Use of broadband to improve health volunteer health Provide devices in police stations and for police officers Use of broadband to improve (number of devices per police station to be determined safety during the action planning (e.g.., 1 per officer) Adoption of Network operators, USF, Counties and other agencies to Increase ownership and use of broadband support training and awareness raising activities in villages devices and public access points for users to understand the benefits of broadband and the use of broadband devices and services Research health impacts of device usage, especially Increase safe ownership and amongst children (e.g., social skills) use of devices E-Waste Establish local recycling facilities in PPP (with supportive Reduced e-waste policies to encourage PPP) Provide incentives for take-back of devices and create a Reduced e-waste supply chain for value addition from recycling Device Use rebates to reimburse legitimate devices Reduced counterfeit devices Management system(s) Establish certifications for retailers Reduced counterfeit devices Local Develop feasibility study to attract contract manufacturers Strategy for local ICT Assembly manufacturing New Devices Drive the use of IoT through government procurement and Increase in IoT devices support for innovation Support local IoT device manufacture or customization in Increase in IoT devices partnership with other companies/Gearbox etc. Drive the use of customized devices to aid specific groups Increase in IoT devices of users

51 The National Broadband Strategy 2018-2023

While implementing Public Access Points (PAPs) there are a need to have a time limit for using the devices, a very small fee for use, and a restriction of access to certain sites only, e.g. e-government, Kenya Institute of Curriculum Development (KICD), Ajira etc. In addition, PAPs at schools could be a membership-based system for security purpose. Further, Internet of things (IoT) for animal tracking, SGR freight tracking. The implementation plan on broadened devices is found at Appendix I-6 3.6 Privacy and Security

In addition affordability, reliability and quality of services, broadband networks also need to be sufficiently secure, trustworthy and respect the privacy of the consumers. Privacy and security are imperative drivers of demand for broadband and online services – the more the users perceive adequacy of privacy and security, the more confident they will be in transacting online and the more the adoption of broadband will be. This underscores the fact that privacy and security are crucial broadband demand-side drivers.

At the core of confidence and security of networks and services, is information security and privacy, which will be ensured by building confidence in the security of online transactions, and of the broadband service users. Consistent with this objective, the Kenyan Government will: Promote legislation for information security, data protection and the protection of privacy of citizens and ensure the interface between technology and rights to privacy are well regulated. Specifically, Kenya’s national and regional communications networks will be made secure and reliable through the empowered computer emergency response teams (CERTs) and standards. Further cooperation in the fight against cybercrime and cyber security breaches will be pursued to ensure that the vulnerable members of the society are protected.

Security. There is prevalence of social engineering attacks, SIM swapping, bank fraud and identity theft leading to inconvenience, and loss.

Privacy and data protection. Consistent Article 31 of the Constitution a Draft Bill and policy have been finalized and undergoing stakeholder consultations with data protection commission (MoICT and Senate consulting).

Overall, the citizens and businesses are significantly insecure while online, their privacy is being infringed and private data is not adequately protected.

52 The National Broadband Strategy 2018-2023

Figure 12: Status on privacy and Security

A summary of gaps, opportunities, strategic objectives and an action-oriented implementation plan with regard to privacy and security as applied to broadband in Kenya follows. 3.6.2 Gaps ▪ Weak Child Online Protection (COP) legal and regulatory framework ▪ Lack of laws and policies that govern the use of data ▪ Lack of awareness on the best information security practices and data protection procedures ▪ Lack of confidence in the security of online platforms i.e. e-government, online markets etc. ▪ Lack of adequate research and development in information security and privacy issues, locally ▪ Broadband cables are considered critical infrastructure and not a utility. ▪ While the right to privacy is enshrined under Article 31 of the Constitution, there is no data protection law with provisions on how data should be handled by all entities that have or gain access to personal data during their business. ▪ The European Union General Data Protection Regulations came into force on 25th May 2018 and the Regulations have implications on Kenyan businesses. ▪ The citizenry lack adequate skill and knowledge on the best online practices, which as a result exposes them to dangerous actors who use their personal information for criminal purposes. 3.6.3 Opportunities for improvement ▪ To be innovative in how children’s content is regulated as they often bypass the existing protections to enact a data protection law that will govern the use of data and personal information to international standards. ▪ To provide civic education and capacity building on safety online and the scope of privacy rights ▪ Set up frameworks to authenticate systems and users ▪ Safeguard the systems further to build confidence. ▪ Encourage more research institutions and centers to engage in online privacy and security research ▪ Have ICT infrastructure declared a utility in the law so as to have punitive measures taken against anyone who vandalizes and/or destroys broadband infrastructure.

53 The National Broadband Strategy 2018-2023

3.6.4 Strategic Objectives In sum, and in working on this strategy, the strategic objectives with regard to privacy and security are as follows: 1. The ratification of the Budapest Convention on Cybercrimes to enhance the country’s international positioning on cybercrime and to address the existing gaps in its cyber-laws 2. Enactment of the cyber-specific laws following rigorous due process including stakeholder involvement 3. Drafting of policy instruments and practical tools such as guidelines that would more precisely define various risk levels as relates to particular information security scenarios 4. Enhanced cooperation of organizations in order to utilize the varying strengths of these organizations in the regulation of the highly technical Internet space thereby increasing its regulatory efficiency over cyberspace 5. Further research, capacity building and talent exchange in Internet governance and regulation best practices within the borderless cyberspace 6. Implement ISO 27001 or similar standard Consistent with the foregoing objectives, an implementation plan comprising expected outcomes, actions, indicators and targets is presented in Appendix I-7 3.7 Finance and Investment Broadband is emerging as a true backbone of the digital economy due to its transformative potential for all facets of society. In realization of this imperative, the government of Kenya is introducing broadband as a development agenda to ensure that digital inclusion for all is achieved. To this end, universality and affordability of broadband calls for an effective cooperation between both the private and public sector stakeholders in the financing and deployment of broadband. Focus action areas that include; gaining access to low-cost private sector finance; formulating effective policy and regulation for the ICT sector; devising appropriate tax policies for the sector; selecting and implementing other interventions underpin the investments to be made.

The success or failure of a broadband deployment project primarily hinges on two factors; the investment model that assesses the financial viability of the venture, and the financing model. The investment model comprises all the capital, operating expenses and revenues, assumptions and provides the classical metrics of business viability, such as return on investment and net present value. The financing model addresses the approach that will be followed to fund the required investment to roll out infrastructure. The investment model and funding assumptions are constrained by a number of project contextual variables, comprising the competitive environment and players driving the broadband rollout. In this section, a presentation of possible investment and business models, and financing approaches that can be adopted for the NBS 2023 is made.

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To be able to source for funding, an elaborate national broadband strategy that is clearly aligned with national priorities including the Big Four Agenda is required. With this NBS in place, funding will be sought from the private sector. A clear investment and business model is not only crucial for the effective deployment of broadband but for attracting the required finances.

The funding for NBS 2023 envisages implementation of broadband initiatives and projects to be funded through private sector initiatives, and Public Private Partnerships while the government will provide incentives. To encourage private investment the Government will put in place favorable policy decisions to ensure investment is forthcoming. This can be done through tax incentives, regulatory incentives on building key infrastructure, industry collaboration (in specific areas such as education, agriculture and healthcare), tax holidays and by reducing the costs of rolling out fibre networks where the reuse and sharing of physical infrastructure that supports digital networks will be mandated. Other sources of finance include innovative models for partnership and fibre infrastructure sharing.

Government collaboration models for investment in broadband will include the following: (1) PPP: where government and private sector institutions such as Banks and other Corporates roll out broadband connectivity to all parts of Kenya. An example of this is where Italy has enlisted banks to finance its open plan for fiber at up to US$8 billion broadband rollout. Tax holidays will be good an incentive for projects of long-term nature where new capital intensive investment is required such as construction of ducts and expansion of the NOFBI to all counties, sub-counties and wards (a) Design Build and Operate (DBO): This is a model used for public-private partnerships. In a private DBO model, the private partner will be responsible for the design as well as the building and operation of broadband facilities. DBO ensures technology neutrality, as the private partner is able to choose a preferred technology without any public intervention. In a public DBO model, the public partner is responsible for design, building, and operation. The NBS 2023 recommends use of private DBO in financing broadband (b) Public-Private Community Partnership (PPCP): This is a special variation of PPP is public-private community partnership (PPCP) in which the local community is one of the partners involved. PPCP addresses some of the concerns raised in relation to PPP projects, as it ensures a local participation and focus on local development rather than profitability as the only parameter of success. PPCP is widely used in community projects such as the proposed bottom up citizen model but is also applied in projects aiming to reduce the digital divide, which the broadband strategy aims to address.

(2) Private Sector Funding (PSF): This model will involve development of schemes where the private sector are invited to contribute to the development of broadband projects and national infrastructure base. In this case, the government will allow private actors to earn a reasonable return on investments in those projects where they accept all the risks. Alternatively, the National Government will need to incentivize through tax holidays, and tax cuts for broadband projects implemented by the private sector. The target Private sector actors in the PSF model include Banks, Industry collaborations to implement the projects, the World Bank, Africa Development Bank (AfDB) International Telecommunication Union (ITU), and Africa Telecommunication Union (ATU).

(3) Collaborative Government Funding: In this approach, the Government will collaborate with local entities who have relevant expertise in broadband related aspects such as the laying of public physical infrastructure to roll out aspects of the broadband. The potential collaborators are public corporations such as Kenya Pipeline Corporation, Kenya Railways Corporation, Kenya Power and Lighting Company (KPLC), Kenya Urban Roads Authority (KURA), Kenya Rural Roads Authority (KERRA) for provision of shared open infrastructure in counties, rural areas and national highways; and KENET for the rollout of broadband to educational institutions in Kenya.

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Figure 13: Status on Finance and Investment

Target/programs:--→ Private sector, PPP and National treasury/USF 3.7.1 Financing and investment Gaps The strategy identifies various gaps in financing of broadband which include lack of coordination for financing broadband initiatives; inadequate delivery structure for coordination and implementation; insufficient awareness of the financing options/instruments especially to the small operators such GEMS (Growth Enterprise Management Segment); suboptimal prioritization of projects; limited sharing of resources to minimize on duplication of resources especially in regard to fiber cable deployment and low budgetary contribution by national government towards ICT sector. Currently the government contributes 0.5% of National Budget towards ICT. Further, there is insufficient awareness by the county government on how they can support ICT services. 3.7.2 Opportunities • Availability of regional financing from the World Bank and Africa Development Bank (AfDB), which can be explored. This should be done by developing of proposals and submitting them consideration by the financiers • Improving awareness on the various financing options /instruments. To be facilitated by CA, MOICT, Capital Markets Authority (CMA), Central Bank of Kenya (CBK) & financial institutions • Provision of tax incentives on end user devices • Promoting market based competition • Tax holiday on new investment in ICT sector • Security/protection of investment in the ICT sector • Engaging with Council of Governors and the regional county blocs with a view to improve their understanding of the ICT services and how the various counties can support deployment/provision of ICT services in the counties under the leadership of the CA. 3.7.3 Investment model Attracting investment in broadband is crucial. Given the scarcity of resources, the choice of the model for investment in broadband is an important decision, which can lead to success or sub-optimal results with regard to broadband deployment. The choice of one model over another is a decision based on the budgetary and socio-economic context of the area, the ambition (mission) level of the public authority/organization charged with delivery of broadband, and the development goals for the country.

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Some questions that a public authority16 (PA) (in this NBS, the Ministry of ICT) will need to answer in the choice of the broadband investment model are: 1. How can we create an engine that ensures future investment in infrastructure beyond the immediate project and funding available? 2. Are there benefits in keeping control and ownership of the passive infrastructure and in defining the deployment priorities? 3. Would we rather keep the ownership of the infrastructure but let an operator define and execute the deployment? 4. What are the pros and cons to involve vertically integrated operators (incumbents and others) to upgrade or expand the network? 5. Do we also see the scope to support local bottom-up citizen initiatives? 6. Given the socio-economic conditions on the ground, which level of competition is required to facilitate penetration of high quality and affordable services?

There are four models17 representing a range of options for combining public and private investment in the implementation of broadband, which are presented in increasing order of involvement by the Public Authority (PA) in charge of broadband (e.g., broadband council). Each model is applicable in different circumstances, depending on the scope of the required infrastructure, and the specific aims of the PA, and the investment/risk appetite of potential private sector partners.

The most important choice a PA faces is how much to commit, and what role to take vis-à-vis the market, the citizens, and the businesses in the country. This should be considered separately from the public authority’s role in making decisions on the best financial resources.

New technologies and innovative deployment models can help dramatically reduce network costs and increase the quality of broadband in general. Those technologies are difficult to develop without a robust, affordable, and efficient system for granting of experimental licenses and authorizations for experimental deployment models, as well as ensuring speedy transit through customs for technologically innovative products and devices.

In summary, the examples of the investment models are as follows: a. Bottom-up citizen model. The bottom-up, or local community model involves a group of end users organizing themselves into a jointly owned and democratically controlled group (frequently a co-operative) capable of overseeing the contract to build and operate their own local broadband network. This falls into digital communities for county governments, or digital villages, Innovation/Technology hubs or centers, for example “silicon savannah” (the Konza city) b. Private design, build and operate (DBO) model. The private design, build and operate (DBO) model involves the Broadband Authority18 issuing funding (often in the form of a grant) to a private sector organization to assist in its deployment of a new network. The public authority has no specific role in the ownership or running of the network, but may impose obligations in return for the funding. c. Public outsourcing model. Under a public outsourcing model, a single contract is awarded for all aspects of the construction and operation of the network. The major characteristic

16 For the purposes of this NBS, the Public Authority (PA) is the national broadband council (NBC) 17 Guide to broadband investment. European Union Regional Policy 18 This can be a public organization mandated to oversee the deployment of broadband

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of this model is that the network is run by the private sector, but the public sector retains ownership and some control of the network. d. Joint venture model. A joint venture is an agreement under which ownership of the network is split between the public and private sector. Construction and operational functions are likely to be undertaken by the private sector. e. Public design, build and operate model. A public DBO model involves the public sector owning and operating a network without any private sector assistance. All aspects of network deployment are managed by the public sector. A public sector operating company may operate the entire network, or may operate the wholesale layer only (with private operators offering retail services). Access to NEPAD Infrastructure Project Preparation Facility (NEPAD-IPPF) fund will depend on the availability of national broadband policies and specific NBP projects.

A number of investment models have been successfully implemented such as Joint Ventures between KPLC, standard gauge railway (SGR), Pipeline, MoICT and CA on the provision of National Fibre. Developing a National Fibre Company19 and leasing models (Equipment & Accessories where financing can be provided either by a financial institution or by vendor).

The private sector is the best positioned to finance broadband infrastructure, and is better equipped to enable the rapid deployment of infrastructure to a wide area of coverage. Consequently, where there are instances in which ‘purely commercial considerations’ are insufficient, the options that are available and can provide value, which include public-private partnerships will be used to deploy broadband in Kenya. With the NBS having identified ‘inadequate financial resources’ as ‘one of the crucial factors affecting broadband development in Africa,’ In order to deliver on desired infrastructure development outcomes the ‘private design, build and operate (DBO) model,’ where the government will provide support and assistance in the deployment of a new network (in the form of funding such as tax holiday for a certain period) to be built and operated by the private sector is encouraged. 3.7.4 Business Model The business model defines the roles and responsibilities of different actors in the broadband value chain, with special focus on the public authority charged with the delivery of broadband. A broadband network broadly consists of a passive infrastructure (ducts, cables, masts, premises), and active equipment (implementing the technology: transponders, routers and switches, control and management servers). On top of that, applications and services are delivered. The three layers are characterized by different technical and economical properties and different business roles:

1. The physical infrastructure provider (PIP), which owns and maintains the passive infrastructure; 2. The network provider (NP) which operates (and typically owns) the active equipment (incumbent operators, new independent operators, broadband companies) 3. The service provider (SP), which delivers the digital services (e-health, elderly care, TV, Internet, phone, video-conferencing, entertainment, teleworking, smart monitoring, etc.)

Depending on which market actors take up which roles (PIP, NP, SP), different business models arise. If one market actor takes all three roles, it is said to be vertically integrated, and the resulting business model is referred to as a vertically integrated model (all large telecom operators fall in this category; the actions on investment and business models are presented in Table 7

19 South Africa has implemented this model for broadband delivery; the company is known as Broadband Infraco Limited (BBI) see http://www.infraco.co.za/CorpProfile/default.aspx

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Table 7: Broadband Investment and Business Model

Broadband Description of models Proposed Action20 Timeline Aspect Investment Direct investment: the public-run Elaboration of the investment Q2 2019 Model Municipal Network model (aka Public models and Publication of DBO) Guidelines Indirect investment: the private-run Elaboration of the models and Q2 2019 Municipal Network model Publication of Guidelines Support of bottom-up initiatives Elaboration of the models and Q2 2019 Publication of Guidelines Operator subsidy (aka gap-funding or Elaboration of the models and Q2 2019 private DBO) Publication of Guidelines Business Physical infrastructure provider (PIP), Elaboration of the models and Q3 2018 model which owns and maintains the passive Publication of Guidelines infrastructure Network provider (NP) which operates Elaboration of the models and Q3 2019 (and typically owns) the active Publication of Guidelines equipment (incumbent operators, new independent operators, broadband companies) Service provider (SP), which delivers Elaboration of the models and Q3 2019 the digital services (e-health, elderly Publication of Guidelines care, TV, Internet, phone, video- conferencing, entertainment, teleworking, smart monitoring, etc.)

3.7.5 Financing Broadband Funding Broadband Access21. Inadequate financial resources have been identified as one of the crucial factors affecting broadband development in Africa. Viable sources of funding that can be pursued include structured public-private partnerships, liberalization of ICT to attract investors into the broadband infrastructure space and privatization of state owned ICT corporations to improve efficiency. Among the measures to implement broadband are government investment in basic infrastructure e.g., for national fibre optic backbone networks such as the national optical broadband infrastructure, NOFBI (Kenya) setting up special purpose vehicles (SPVs) for broadband (e.g., as was the case for the East Africa Marine System [TEAMS] and the East African Submarine System [EASSy] submarine cable systems). Additionally, fiscal incentives for broadband infrastructure, such as reduction of taxes, could go a long way in stimulating broadband and are highly recommended for wireless broadband access. At the highest level, the financing model of broadband networks comprises three sources of funds, namely private lenders (through a single institution or a syndicate), public funds (through grants or low interest loans), and equity investors (governments, multilaterals or the private sector). The following are some of the possible financing options for broadband: -

(i) Use structural funds to finance the rollout of high-speed broadband networks22. Use the Structural and Rural Development Funds that are earmarked for investment in ICT infrastructures and services. This can be achieved by designing projects that would accelerate the deployment and use of broadband along all the broadband thematic areas/pillars. In this case some of the funds will be directed to broadband ICTs.

20 Proposed to be based on the Guidelines for Broadband Deployment in SADC prepared by Dr. Thomas Senaji /ITU in collaboration with CRASA (2014). This action should be led by the Public Authority (such as the National Broadband Council) charged with the delivery of broadband.

22 http://ec.europa.eu/digital-agenda/en/pillar-iv-fast-and-ultra-fast-Internet-access/action-48-use-structural-funds- finance-roll-out-high

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(1) Financing national broadband infrastructure National broadband infrastructure can be financed through mechanisms such as the following:

• National open access network: The network assets of operators are purchased; the government remains a majority shareholder, at least temporarily, although the national company can be opened to private investors. The network is open to all service providers at regulated prices (e.g., National Broadband Network (NBN) in Australia, and Broadband Infraco [BBI] of South Africa).

• National open access alternative carrier: A variance of the prior model, in this case the national network remains an alternative carrier to the incumbent backbones. Its purpose is to break down potential bottleneck prices that could be raised by incumbents (e.g., Telebras in Brazil, Argentina Conectada in Argentina).

• Government financing of the national network. In this case, the government invests temporarily in a network to be deployed by a private carrier. The purpose in this case is to facilitate through funding, the deployment of a high capacity infrastructure (e.g., NGN network in Singapore). National government local networks (e.g., to Schools to facilitate the DLP and Laptop project). In this case the Government acts more as a facilitator by dedicating a special fund to help financing neutral open access models, most of the time being at a regional or municipality level (e.g., National Very High Speed Plan in France, Broadband Delivery UK Plan, Municipal Fibre to the Home (FTTH) investment in Sweden, BB Delivery in the UK). In this case, the government is the project sponsor

(2) County Governments Financing In this case, the county government assumes ownership of a fiber optic network laid out to serve the population in its county. The model is, in many cases, triggered by the concern of the county to be left unserved by ultra-fast networks deployed by telecommunications carriers and cable TV operators to serve high-density areas only (e.g., in the rural and marginalized areas). It can assume one of three business models:

• County retail, whereby the county becomes the service provider offering triple play services to the population under its purview;

• County wholesale service offering (or ‘Open Access’), where the county provides access to the infrastructure to third parties (e.g. service providers) for a fee; or

• County financing of an infrastructure, which is owned, operated and maintained by a private provider on a ‘lease’ model (based on a public private partnership model A summary of the financing options is presented in Figure 13

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.Figure 14: Financing Models

3.7.6 Partnerships

Public Private Partnerships (PPPs) could involve partnerships or joint ventures between e.g. utility providers such as KPLC and telecommunication firms (and other infrastructure providers). The trend towards increased demand for high speeds of Internet will drive investment partnerships between Internet/telecom companies and public sector companies to invest in broadband. The rationale for this comes from the fact that Kenya has the highest Internet speeds in Africa: Kenya (12.16 MBPs); Rwanda (1.69); SA (6.74); Mauritius (5.71) and Morocco (5.1)23. A caution offered in this plan is that the principal rule that public-sector players must not undertake commercial activity in competition with private-sector players is to avoid the danger of distorting competition. Regional and local initiatives for public-private collaboration that promote the deployment of infrastructure should also be sought carefully. Public private partnerships are an important means to bringing network infrastructure to high-cost rural areas, especially if those partnerships facilitate infrastructure sharing. In rural areas that are either unserved or underserved, the sharing of infrastructure can be critical to addressing the challenge of deploying networks in high-cost areas that would otherwise be economically unsustainable. The sharing of passive infrastructure (i.e., the sharing of physical space such as ducts and towers, non-electric infrastructure at cell sites, as well as power supply) can lower upfront capital expenditures, which reduces barriers to the investment in new deployments. Investment in connectivity infrastructure. The government will promote partnerships with private sector (PPPs) on investment in connectivity infrastructure to develop technologies and platforms for use by Mobile Network Operators (MNOs) and Internet Service Providers (ISPs) to make affordable Internet access possible in communities in Kenya including through the use of unmanned aerial vehicles, lasers, satellites and terrestrial wireless systems. PPPs will be implemented in line with the broadband business models along the broadband value chain. Specifically PPPs will be utilized to develop broadband in at least three levels that constitute the broadband business models; these are: (i) Physical layer comprising physical infrastructure development such as ‘dark’ optical fibre along the highways, towers for radio equipment among others. (ii) Active layer which will comprise implementation of broadband networks over the physical infrastructure; and lastly,

23 State of the Internet In Kenya, 2017. https://www.ifree.co.ke/wp-content/uploads/2018/02/State-of-the-Internet-in- Kenya-report-2017.pdf

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(iii) The service layer where public and private sector will collaborate in the creation of services, content and application for use across all sectors of the economy, including in the Big 4 Agenda. These broadband investment and business models will be elaborated within the first six months of the life of this NBS and policies/guidelines/regulations prepared to operationalize them. A comprehensive study is recommended to be conducted within the first one year of NBS 2023 to determine the most suitable business models in the Passive, Active and Service layers of broadband.

Further, other partnerships between MDAs that are aimed at promoting and developing broadband infrastructure, services, content, and applications will be implemented such as those between the MoICT and the Big 4 Agenda MDAs; and other MDAs.

Meanwhile, any drawbacks in the existing policy, legislation and regulations with regard to the effective implementation of PPP programs and projects will be identified and addressed within the first 12 months of this NBS to pave way for smooth implementation of BB projects under this framework. 3.7.7 Private Sector Investment Opportunities in NBS 2023 There are various opportunities for investment in broadband in the rural areas where huge digital divide between the urban and the rural areas exits.. Infrastructure and connectivity opportunities include extending broadband to ward levels, and distributing broadband to local communities using appropriate broadband last mile technologies Other investment opportunities include broadband connectivity to housing units which will be constructed as part of the Big Four Agenda and the second phase of the SGR project where optical fibre can be integrated in the road and wireless access used to serve the population along the railway and pipeline provides an opportunity for optical fibre to be integrated in the rail road and wireless access used to serve the population along the railway and pipeline. Further, there is opportunity for content and applications development through the constituency innovation hubs. Similarly, broadband in universal health care delivery and smart agriculture to support food security in Kenya are other opportunities for the private sector. There is also an opportunity to deploy and embed broadband in the manufacturing sector to not only improve efficiency in this sector but also to manufacture broadband devices and accessories. The government will support the private sector by providing enabling environment comprising policy, legislation and regulation to attract investments for the development of broadband by private investors. 3.8 Integrated Broadband Projects This NBS envisions various projects to be implemented as a means to achieve the vision of affordable, accessible and secure broadband for all citizens. Implementation of these projects will be done through collaborative mechanisms among the various stakeholders in the framework of integrated broadband projects (IBP) where all inputs for the project are planned at the same time to avoid delays arising from omitted components at implementation stage; specifically, (i) The expansion of the NOFBI for instance will involve collaboration between the Ministry of Transport and Infrastructure, KURA, KERRA, Kenya National Highways Authority (KENHA), KPLC and Kenya Electricity Transmission Company (KETRACO). (ii) County broadband infrastructure will be implemented through partnership between the private sector county governments and Postal Corporation of Kenya (e.g., at the Huduma centres). (iii) Connectivity to schools will be achieved through collaboration between the Ministry of Education, Science and Technology (MoEST), KENET and the private sector. Further, enhancing capacity building for and awareness of broadband requires extensive effort by the MoEST, KICD, TVET colleges, Universities and the NBS delivery unit to work together to include broadband in the curriculum as well as have national broadband awareness campaigns.

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(iv) Utility services providers including the Nairobi Water and Sewerage Company with a customer base of over 250,000 will also be engaged in broadband connectivity to the homes this may be done along with the installation of smart meters as is being implemented by the company. In this regard, an integrated planning of broadband projects will be applied to ensure that all stakeholders provide input, which will ensure that the projects are successfully implemented,

4. ROLES OF STAKEHOLDERS

4.1 Multi-stakeholder Approach to NBS 2023 Implementation

There are various stakeholders who will play important roles in the implementation of this Strategy. The following are the key roles of stakeholders with regard to the implementation of the NBS (The indicative roles of stakeholders is presented in Appendix II). (i) Parliament (The Senate and the National Assembly) to enact necessary legislation necessary fully operationalize the NBS (ii) MoICT as the custodian of the NBS, will monitor its implementation through the NBC; be responsible for the review of the NBS, champion public education on the NBS and set up the broadband delivery unit (BDU) at the key implementing agencies which will have membership in the NBC (iii) Ministry of Infrastructure and the relevant authorities under it - KERRA, KURA, KeNHA (iv) The regulator (CA) shall draft and ensure implementation of regulations regarding the NBS (v) Service providers and licensees (1) Provide consumer education (2) Provide broadband services of acceptable quality and at affordable prices; (3) Be part of the development of the demand side of the broadband ecosystem; (4) Develop content and e-applications. (vi) Consumer organizations (1) Articulate consumer concerns (2) Demand for acceptable quality of service and pay for it

(vii) Kenya National Education Network Kenya National Education Network (KENET) is the National Research and Education Network (NREN) of Kenya mandated to provide high speed connectivity and cloud services to the education, research and government institutions affiliated to the education sector including hospitals, aimed at transforming education and research using ICT. The NREN is thus a specialized operator of a private educational and research broadband network and research infrastructures offering services like identity federation, community cloud and research computing, for the benefit of researchers, faculty, students and staff. It is a critical component of the National Innovation System. It is also the vehicle for the government to increase the penetration of broadband services in educational and research institutions. It will therefore lead ICT/ broadband research and innovations in broadband; and develop ICT curricula.

(vii) Kenya Power and Lighting Company KPLC is both a provider and an enabler of broadband. It is a provider because it has rolled out an optical fibre infrastructure over the power lines, which can be used by broadband service providers. Secondly, KPLC distributes power to various consumers where other providers of broadband depend for supply power to their (other BB providers) network. It is anticipated that the MoICT, Ministry of Energy and that of Infrastructure will closely collaborate in the development of broadband. More specifically, the areas to which broadband needs to be extended and where there is no power supply will be identified by the BDU under the auspices of the NBC and shared with these lead MDAs for coordinated action.

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(viii) Kenya Electricity Transmission Company Ltd Kenya Electricity Transmission Company Ltd (KETRACO) is wholly owned government company incorporated with the mandate to plan, design, construct, own, operate and maintain high voltage electricity transmission grid and regional power interconnectors that will form the backbone of the National Transmission Grid. In the execution of this mandate, KETRACO will be encouraged include fibre cable along with its power lines to cover areas not reached by NOFBI; this infrastructure, where feasible, will also be utilized as a carrier of the NOFBI to underserved areas. (ix) Postal and Courier Subsector Postal services can play a pivotal role in delivering services, lowering the costs associated with access and providing inclusion to basic broadband services. By utilizing ICTs to improve delivery of public services through one-stop-shop over the wide postal physical infrastructure for example, the bottlenecks associated with digital divide can be addressed in part. Post offices have a strong presence in rural areas. In Sub-Sahara Africa (SSA), it is estimated that 82% of post offices are located outside the three largest cities of each country.24 This means that post offices are located exactly where the population lives, not only in urban areas, but also in peri-urban and rural areas; and have a lot to offer to rural populations in terms socio-economic inclusion. The role that the postal sector plays therefore include the following main areas, among other things:- (1) Facilitation of communication within the country and with the rest of the world; (2) Facilitation of trade, through the movement of parcels and other goods within the country and internationally; (3) Bridging the digital divide, through provision of Internet cafes (the Public Access Information Centres, PAICs) and other Information Communication Technologies (ICTs) within the postal network; (4) Contribution to Education and Literacy, through delivery of learning materials through the postal network and access to online learning through the postal infrastructure; and, (5) Contribution to GDP, through postal revenues;

Through broadband therefore, proper and well-managed e-Post services can leverage on the efficiency and scope of opportunities available online and facilitate provision of other ancillary services such as e-Finance services, e-Commerce services, e-Government services and e- Learning services.

(x) Kenya Network Information Centre

Kenya Network Information Centre (KeNIC) will effectively administer the Kenyan ccTLD market, setting the pace of the local domain market and increase the uptake of .ke domains by ensuring affordability of this resource

It is reiterated that for avoidance of ambiguity, each of the stakeholders mentioned would play the roles specified in their respective mandates and licenses; and collaborate with other stakeholders in the broadband ecosystem to ensure its success.

24 UPU, 2008

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4.2 Role of Private Sector and Development Partners The private sector will play an important role in the implementation of broadband. To facilitate this, the government will create conducive environment for ensuring the attraction of private investment and competition between providers of broadband services. At least 70% of the financing is expected to come from the private sector for the relevant national broadband projects. The strategies through which the private sector will be involved in investment in broadband opportunities in NBS 2023 include: (i) Cooperation between the public and private sector in developing networks in areas, which are considered to be underdeveloped. These will include extending broadband to marginalized and remote areas of the country. The collaboration will also cover priority projects for deployment of fast Internet connections for the public institutions in rural areas. (ii) Encouraging local, regional and international financing agencies to invest and/ or finance key NBS 2023 projects. These agencies include the World Bank25, AfDB, and IFC. In order to engage them, integrated broadband project proposals will be developed for consideration by the financiers (iii) The private sector will develop innovative financing options/instruments through which the private sector will participate in financing broadband. Capital Market Authority and financial institutions will facilitate this initiative. The instruments could be securities such as bonds and development of a National Fibre Company in which the private sector companies (and individuals) can invest. Such a fibre company would pool resources from various investors. (iv) For financing of devices, the private sector will set up manufacturing plans for broadband devices. Another approach is leasing model for equipment and accessories/devices–where financing would be in in the form of provision of equipment or devices by a financial institution or by a vendor at affordable periodic installments.

(v) Innovative investment arrangements attractive to the private sector investors in the Kenyan markets will also be implemented. These will include the Design, Build and Operate (DBO) where investors will be encouraged to invest in broadband projects and Build and Operate under some arrangement with the Government recovering their investment. The DBO model is will be used for public-private partnerships. The private DBO model, where the private partner is responsible for the design as well as the building and operation of facilities will be encouraged.

While the private sector and the development partners play their respective stated roles, the Government will:-

(i) Make Build-out Requirements Effective: Motivate licensees to meet build-out milestones and timeframes by making licenses contingent on build-out requirements. (ii) Speed Network Deployment by determining spectrum auction: Award spectrum to bidders committed to efficient allocation and maximal utilization by also incorporating speed of build out when determining auction winners. (iii) Keep Rural Deployment on Pace: To keep rural deployment on pace with urban deployment, the Government of Kenya could make access to spectrum in urban areas contingent on meeting build-out requirements in rural areas.

25The World Bank can support governments in developing their broadband services. By information sharing, benchmarking, technical assistance and support in regulation, the World Bank can help governments to improve the functioning of markets, stimulate investment and learn from the experiences of other countries. The World Bank can also provide financing for strategic investments to support the development of key parts of the infrastructure. International submarine cables, cross- border connectivity and high capacity domestic backbone networks are all examples of areas in which World Bank investments can play a catalytic role, crowding-in private sector investment and improving service delivery. The EASSy cable along the East coast of Africa and the RCIP program throughout Eastern and Southern Africa are all examples of where the World Bank is supporting the development of these key infrastructure bottlenecks through Public-Private-Partnerships (see Tim Kelly et al, 2009 https://www.oecd.org/ict/4d/43631862.pdf )

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(iv) Increase spectrum available for innovative access and backhaul technologies: The Government will continually identify and allocate frequency bands that can be utilized for high capacity backhaul via solar powered aircraft, Wave terrestrial access and backhaul solutions, and higher throughput satellite backhaul capacity. Table 8: Strategic role of key stakeholders in Broadband Value chain

Stakeholder/V Devices Connectivity Capacity building Local business value created alue chain Private sector Provide service to Provide Internet ‘blankets’ in (i) Training of customers (i) Local communities and include devices as towns and cities on new technologies private sector have set up a package devices and services business with specific (1) Mobile Devices (ii) Conducting BB products targeting BB use at (2) Tablets awareness programs local levels e.g., at wards and (3) Laptops- across the country village level. (4) Clouding (ii) Private sector innovative (5) Mobile Offices capabilities and production of new services, products and creation of tech companies, including use of modern mobile applications. (iii) Establishment of variety of ICT based services/applications utilizing the BB network to continuously improve the quality of people’s lives. Counties (i) County (i) County BB plans and (i) Budgetary provision 1. Enhanced digital; literacy governments to investment: County for regular sensitisation (bridge digital divide) offer computer Governments should come training on BB at all 2. Employment resulting purchase up with plans and targets levels of the county from emergence of new assistance to staff and strongly implement BB government businesses which quickly and youth to be policies for their population (ii) Development of adopt and diffuse new able to access (Note: BB leading countries customised programs to 3. Technologies and broadband like Japan, Sweden and facilitate Internet infrastructure suitable for (ii) Counties to South Korea drove market education, computer their businesses establish penetration by establishing use in schools, and 4. Improved health partnerships with targets at various levels). homes. 5. Improved access to service providers/ (ii) County governments BB (iii) Special programs to education equipment provider projects including e- educate for affordable BB government, digital-health, housewives, who tend devices and e-learning or distant to control household education in line with finances on use and broadband infrastructure benefits of BB

(iii) Community access networks: Rural broadband expansion should be undertaken by counties through creation of community access networks to distribute services to the communities (liaison with the regulator). (iv) Each County to establish three (3) community network hubs for rural penetration. And in each hub establish Digital Knowledge Centre (DKC) and Digital Knowledge Library ( (DKL)

(v) ICT cultural community: Counties should Contribute toward the creation of a

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Sustainable ICT-based cultural community and showcase county’s unique knowledge assets. (iv) Digitisation of operations: Counties aim at digitizing and Designing knowledge contents in their counties (vi) Counties try to facilitate the sharing of Digital resources even within counties particularly in the county economic blocks Communities 1. Pooling of 1. Ensure security of 1. Organize at least one 1. BB infrastructure is free resources to infrastructure community meetings from vandalism hence acquire BB 2. Mobilise resources to to sensitize members continuity of service devices purchase broadband on broadband 2. Relevant local 2. Sharing of services 2. Share knowledge knowledge is created existing 3. Generate content among community and commercialized devices members through for hence generation of 3. Ensuring safe a and meetings income disposal of 3. Increased digital literacy obsolete 4. Enhanced access to devices digital opportunity National 1. Fiscal incentives (i) Expand broadband 1. Promote the 1. Countrywide access to Government on importation backbone: Government to development of ICT/ BB on open access and/ or promote a nationwide fiber- BB centres of basis manufacture of optic expansion through excellence in the 2. Platform for devices and formation of network hubs country entrepreneurs to deploy related (47 in No.) in each county 2. Train all employees BB end user while riding accessories HQ by the end of 2022 in government on BB on national BB 2. BB stimulus (extension of NOFBI). The services infrastructure package across government to promote 3. Jump-starting the the BB value provision of a combination of process by which chain broadband wireless demand for new 3. Enabling policy, technology and/ or wired services reaches a legal and communication as may be critical mass making it regulatory feasible. The infrastructure possible for service environment be accessed on open access providers to reduce their (see appropriate principles by all service cost to rates a mass chapter) providers26 market will support e.g. 4. Government through the promotion subsidization, (iii) Knowledge sharing: The of on-line access, demand national Government will developing ICT-intensive aggregation, and build a sustainable “smart communities,” sponsored pilot knowledge sharing creating incentives for projects Network in Kenya and the creation of local internationally with content for transmission neighbouring countries in via the Internet, East Africa in which expediting electronic Enhanced online commerce and applications and cyber delivering electronic security government services. National and The national and Direct underwriting, loans, Regular public education Affordable and widely County county governments favorable tax treatment, and forums and awareness available broadband services governments to sponsor science other types of financial creation being used by citizens for,

26 Examples of this model is the Korean Government and Swedish government. The Korean government has been very supportive in the thrust toward making Korea advance in BB technology by encouraging a free market and actively policing the service providers through effective regulatory framework. One of the main providers is a state owned Company where Government has shares just like Kenyan Government has shares in Telkom and Safaricom. These companies pushed penetration in S Korea to point where S Korea leads the world the global broadband leadership rankings The Country had a home Internet access of more than 88% of the population by 2016. In terms of broadband users in Sweden, in the year 2016, 93% of the population in Sweden had Internet access at home (mobile broadband services with over 100 Mbps speeds), with main dominant provider being a State-owned company.

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and technology support for construction of socio-economic parks by forging new high capacity backbone activities/development synergies among digital, broadband networks research centers, at both the national and educational county government levels institutions and technology-based companies27 Stakeholder/V Finance and Policy, legislation and Services, Content and Privacy and Security alue chain Investment Regulation application Private sector Invest in broadband Participate in public policy Provide content, services Implement security measures dialogues and applications that are in the equipment and services affordable and of that are provided acceptable quality and suitable for socio- economic development Counties Provide incentives Enact enabling bylaws Provide public content, Ensure that BB infrastructure for rollout of services and applications is not vandalized Broadband in the that are affordable and county up to the of acceptable quality and ward levels suitable for socio- economic development such are permits, registration of persons, etc. Communities Utilize and pay for Utilize Within the confines of Create and Adhere to acceptable security BB services the law and contribute to commercialize local and privacy standards while public policy development content and applications using broadband services National Provide fiscal and Promulgate relevant policies, Provide public content, Implement the security Government regulatory incentives enact laws and issue services and applications measures specified in the for rollout of national regulations on BB that are affordable and NBS including strengthening BB backbone to of acceptable quality and security infrastructure each county suitable for socio- including the KE-CERT economic development such are permits, registration of persons, etc. National and Collaborate in Collaborate in harmonization Collaborate in rolling out Collaborate on BB security County organizing of laws and regulations that national data bases to issues including physical governments investment forums govern BB such as those on support broadband security, cyber security, etc. for BB annually wayleaves, passive BB infrastructure

27 This synergy can be achieved primarily through investments, preferential policies and focused leadership programs designed to finance research and development projects and to promote commercialization of applied research.

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5. GOVERNANCE AND DELIVERY STRUCTURE

5.1 National Broadband Strategy Coordination Arising from the weaknesses observed in the implementation of the NBS 2017, a clear structure to govern and deliver this NBS is recommended. The NBS coordination body shall ensure timely decision making and implementation of projects including operations, maintenance of the broadband systems and ensuring effective monitoring and evaluation. In this regard, and in line with best practice, a well- coordinated implementation framework is required to ensure success of the NBS 2023. Coordination mechanisms will be implemented for at least three fundamental reasons:

(i) For the provision of critical services such as power/electricity to schools, libraries, clinics, etc. as well as the supply of ICT equipment to other facilities; (ii) To ensure that the deployment of NBS is aligned with the implementation of e-government and other government priorities/initiatives that require broadband; and, (iii) To ensure that all aspects (supply side and demand side) of broadband are considered in the framework of integrated broadband projects To be able to accomplish this mandate, a National Broadband Council (NBC) to be headed by the Cabinet Secretary in charge of MoICT will be formed with membership from relevant key institutions e.g., ICTA, CA, V2030 Delivery Secretariat, and others28. The purpose of this intervention is to provide strategic oversight for the effective implementation of NBS 2023. The NBC will achieve this objective by coordinating all necessary inputs and resources necessary for effective delivery of broadband since its membership will comprise key agencies that will be implementing various aspects of the Strategy. The structure of the NBC is presented in Figure 15. Figure 15: Governance and Delivery Structure

The coordination of the broadband strategy will be performed by the NBC, which will provide the coordination is required for at least three fundamental reasons:

28 Utility providers such KPLC, CoG, Ministry of Transport, Infrastructure, Housing and Urban Development, and Service providers (represented by TESPOK)

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(1) For provision of critical services such as power/electricity to schools, libraries, clinics, broader offices etc. as well as the supply of IT equipment to other facilities (2) To ensure that the deployment of NBS is aligned with the implementation of e-government and other government priorities/initiatives that require broadband (3) To ensure that all aspects (supply side and demand side) of broadband and associated inputs (such as power supply, access roads, ducts, towers etc.) are incorporated in the framework of integrated broadband development

Under this governance and delivery structure, the typical functions of the MoICT will include:- (i) Coordination of broadband requirements of all government ministries/departments; (ii) Reporting NBS activities, progress, and challenges to the Government; (iii) Seeking funding, directly from Government, funding institutions and private sector; (iv) Negotiating and signing contracts with service providers and with other institutions on behalf of the Government, or ensuring that the same is done by other government ministries/institution as the case may be; (v) Assisting the National Broadband Council (NBC) with whatever assistance they may require from the government; and, (vi) Provide secretarial services to the NBC

The functions of the NBC are primarily to elaborate and ensure delivery of projects under the NBS 2023 including by overseeing the work of the broadband delivery units (BDU), which will be implementing the strategy on day-to-day basis. The composition and mandate of the NBC are elaborated in Part 5.2.

5.2 National Broadband Council In order to implement this strategy, a multi-stakeholder National Broadband Council (NBC) appointed by the Cabinet Secretary in charge of ICT and mandated with overseeing the development of broadband by various institutions with a clear coordination framework will be set up within one month of the approval of this strategy. The NBC will be headed by the Cabinet Secretary in charge of the Ministry of ICT of the Republic of Kenya and shall have membership from government comprising the ICT regulator (CA) and representatives of key ICT stakeholders from the public and private sector. Specifically, the NBC membership shall comprise MoICT, ICTA, CA, Ministry of Education, Science and Technology, Council of Governors (CoG), Ministry of Energy, one representative of the ICT licensees providing broadband services (TESPOK), Kenya Chamber of Commerce and Industry (KCCI), PCK, a representative of the academia, Consumers’ organization and Civil Society. Once set up, the NBC shall determine the mode of operation consistent with the objects of the NBS 2023 and the associated Strategic Implementation Plan/Matrix in their first meeting, which should be held not later than one month after the approval of this Strategy. The NBC shall also establish thematic task teams to deal with and report to it on quarterly basis on each of the broadband strategy thematic area programs and projects delivery through the Broadband Delivery Unity at the National Communication Secretariat (NCS). The NBS 2023 will be implemented using a program approach (See Appendix I). The NBC members will serve for a three- year term, which is renewable once. 5.3 Broadband Delivery Unit A Broadband Delivery Unit (BDU) will be set up in each key-implementing agency within the first two months of approval of the NBS 2023. The BDU will develop programmes and projects in the thematic area pertinent to the implementing agency; for example, regulatory aspects of the strategy will be the responsibility of CA. It will be staffed either through secondment or direct recruitment of persons with expertise in the strategy’s thematic areas. The staff will ensure effective planning, programming, scheduling and implementation and reporting of progress on projects in all designated thematic areas to the NBC. It is emphasized that though some of the agencies represented in the NBC will not have direct responsibility for projects in a specific thematic area, they will collaborate and provide necessary input to these projects in the framework of integrated broadband projects (cf. Section 3.8).

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Typical roles29 of the NBC and working groups are presented in Box 1.

Box 1: Roles and activities of the NBC and Working Group

National Broadband Council Role and Activities30 Broadband Delivery Unit (Thematic Task Team) Roles • Establish key principles and objectives and Activities • Define responsibilities for implementation of • Key issues, questions for all Working Groups: programmes and projects for each of the – Status: Current broadband investments, market, NBS 2023 thematic areas policies • Implement high-level targets – Trends: How has broadband been advancing in this • Define and appoint BDUs area? • Oversee and advise Working Group – Needs: Most critical gaps or needs to accelerate deliberations broadband • Host Public Forum and Consultations – Constraints: What inhibits broadband development? • Develop a consensus agreement on – Stakeholders: Who can take responsibility? harmonizing strategy inputs – Linkages: Key areas of interdependence and • Prepare draft National Broadband cooperation Implementation program document – Economics: Costs, demand, economic impacts • Oversee creation of Action Plans to define – Recommendations implementation steps • Collaborate on establishing a follow-up regime

5.4 Compensation for National Broadband Council Members The compensation for the NBC members will be honoraria according to the Salaries and Remuneration Commission provisions for such functions and which will be paid when the Council meets to conduct NBS 2023 business. 5.5 Collaboration In its Global Internet Report31 2014, the Internet Society notes that “Internet ecosystem is characterized by the involvement of a broad range of stakeholders and the use of services and infrastructure with dispersed ownership and control and operates on the basis of openness, transparency and collaborative process to guide the functionality and development of the technologies and infrastructure that comprise the global Internet” In this regard, the spirit of collaboration, consultation, stakeholder involvement, public participation and inter-disciplinary engagement will be upheld at all times in order to ensure smooth realization of the broadband vision for Kenya. The NBC will promote collaborations necessary for the implementation of NBS 2023 5.6 Monitoring and Evaluation Framework 5.6.1 Monitoring and Evaluation of Broadband Plan Crucial to the implementation of this strategy is determining whether the stakeholders are implementing the activities as planned and whether each project under each strategy pillar (thematic area) is on track, determining the challenges experienced during the implementation phase and proposing and implementing remedial actions. A robust monitoring, measurement and evaluation (M&E) framework with clear timelines for deliverables will be prepared and publicized (by the NCS) to all implementing agencies to ensure proper tracking of progress. Further, responsibility for this function will be clearly defined and assigned in order to avoid ambiguity on whose responsibility for results and outcomes is in this aspect of the strategy. The M&E function will be performed by the National Communication Secretariat. A template is provided for the monitoring of broadband deployment (Table 25). Each broadband task team will be required to prepare a similar plan for each project.

29 Adapted from David N. Townsend (2014 August). 30 David N. Townsend (2014 August). Broadband Strategy development Overview and Framework. Proceedings of Universalizing Broadband in SADC workshop. Lilongwe, Malawi. August 2014 31 https://www.Internetsociety.org/wp-content/uploads/2017/08/Global_Internet_Report_2014_0.pdf

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Table 9: Monitoring and Evaluation for Broadband (An Example)

Thematic area Projects Supply Target Demand Target Timeline Outcome/Remark E.g., Metro 100% to all Adoption by 2020 Broadband is Infrastructure broadband citizens 60% of available for use by wireless population all citizens network 5.6.2 Frequency of Measurement and Reporting The M&E framework will ensure successful delivery of the NBS by ensuring that the target outcomes are achieved through: - Monthly updates from the BDUs in the implementing agencies - Quarterly projects implementation status - Annual program implementation status and annual stakeholder forums - Midterm review at the end of Year 2 for each thematic area achievements - End term review which will be done at Year 5 where the complete NBS 2023 review will be conducted and formulation of the strategy for the next five-year cycle initiated

An instituted performance management approach to broadband implementation will be implemented. 5.7 Communication Strategy for the Broadband Strategy Arising from consultations with stakeholders during the preparation of this NBS, limited awareness of what broadband is, available broadband services and its potential impact on society was noted. This points to the need to create awareness of the available and emerging broadband services and on the potential benefits that broadband has for socio-economic development. In this regard, effective stakeholder engagement and communication will be done to ensure that implementation of the NBS 2023 is successful. The purpose of the communications strategy will be to create awareness, understanding and secure commitment to achievement of Kenya’s digital vision. In this regard, the NBC, will formulate and implement an appropriate communication strategy for this NBS.

6. BUDGET, STRATEGIC MAPPING AND RISK MANAGEMENT

6.1 Budget Background, Rationale and Benchmarking The NBS 2017 was meant to be implemented with a budget of Kenya Shillings two hundred and fifty billion (Kshs. 250 billion). This amount was to be spent in the first five years for all the five strategic areas identified, namely deployment of broadband infrastructure using fiber and broadband wireless technologies, national capacity building and awareness, as well as content and innovations. Within the five strategic themes, six projects were identified; these were Infrastructure (Long Term Evolution (LTE), Fibre To The x (FTTx) and Backbone), Capacity Building and Awareness, Content Applications and Innovations, and Devices. The total budget of Kshs. 250 billion was not allocated to each of the projects identified under NBS 2017. Though several projects were implemented in NBS 2017, statistics were not adequate to enable a clear understanding of the level of implementation of some of the projects. Some of the projects such as the national optical fibre backbone infrastructure (NOFBI) of which 12% (6,000 km) out of the 50,000km that were intended had been implemented. The percentage completion of the other projects under NBS 2017 such as digitization of core government registries where several registries have been digitized was not documented. For some other projects, there was no indication whether they were undertaken or not; an example is the development of county management information system.

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6.1.1 Budget Rationale for the NBS 2023 and Benchmarking A review of expenditure patterns in many parts of the world show that countries spend varying percentages of their Gross Domestic Product (GDP) on broadband and telecoms. In general, some choose to be conservative while others choose to leapfrog their economic growth by spending higher amounts in proportion to GDP (studies reveal that for faster economic growth, a country should not spend less than 4% of GDP on ICTs). Countries in Middle East and North Africa (MENA) region including Egypt, Jordan, Morocco, Oman, Saudi Arabia, Syria and Tunisia for example invested on average 1% of their GDP in broadband by 2008 per annum. It is noteworthy, that the rapid technological change that the telecom/ICT sector is experiencing plays a major role in the economic growth, and the more a country invests the more it gets.

In developing this NBS 2023 it was recognized that significant expenditure has been made particularly in the rollout of infrastructure to the counties. Thus, the current budget is a zero budget that is, based on estimated expenditure on remaining works and is estimated at Kshs. 111 billion spread over five years. This translates to about 3.7% of the national annual budget on BB and 1.5% of GDP (2017). It is proposed that the budget be increased since the contribution of ICTs to GDP (currently standing at 1%) increases with higher ICT investment. 6.1.2 Breakdown of the Budget The proposed budget for NBS 2023 is allocated as follows:

Table 10: Summary of estimated budget for implementing NBS 2023

% percent of Kshs. USD $ S/N Budget Item Infrastructure (Million) (Million) budget Infrastructure (NOFBI up to the sub-county, and Ward base 1a 54,295 543 stations) plus services and contingency @30% of equipment 1 NOCb 5,430 54 10 2 Capacity Building, and Innovation 16,289 163 30 3 Service, Content Applications 10,859 109 20 4 Devices 13,574 136 25 5 Contingency 10,859 109 20 TOTAL 111,306 1,113

Assumptions: a. Broadband backbone: NOFBI to sub-county (@ $15,000/km) for at least 2500km; Last mile: Base stations 2 per ward (@ $30,000 per ward); Broadband connection to all class A, and B roads totaling to 16300 km (currently 14300Km32) and broadband for all government offices, schools, hospitals and health centres b. Network operation centre (NOC) at 10% of infrastructure 6.2 Strategic Mapping To ensure performance management of the deployment of this strategy, this framework, which clearly demonstrates strategic mapping of the whole national broadband strategy is recommended. In this mapping, strategic objectives are linked with the broadband strategy thematic areas and the performance measures, which address each of the strategic objectives with clear measurable performance indicators (see Table 14). This will guide the various stakeholders in the discharge of their respective responsibilities under this NBS. Table 11: Strategy Mapping of the National Broadband Strategy

Vision [for Strategic Action Target Outcome/ Timeline each objective/strategie Remark s

32 http://www.kenha.co.ke/index.php/road-network

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Pillar/themati c area] Infrastructure To avail broadband Deploy broadband 100% The whole of Kenya is 2023 networks for all infrastructure for covered with Kenyans international, broadband national, provincial and local loop (last mile) access Connectivity Access to Address barrier to 100% All Kenyans can access 2023 broadband connectivity at and use affordable networks and international, broadband services services, and use national and local locally and by all Kenyans levels internationally

Broadband Avail broadband Ensure affordable 100% All Kenyans can afford 2023 devices devices to all devices to access broadband devices citizens broadband services Broadband Avail quality high Implement 100% Broadband is 2023 services speed services in broadband effectively delivering all sectors of the innovation services the Big 4 agenda economy for all sectors including the Big 4 areas Content, To ensure creation 1. Establish/ Continu 1.There is relevant 2023 Applications and availability of strengthen Research ous local content for all and relevant content, e- and Development Technol Kenyans Innovations- applications and (R&D) in these areas ogy 2. There are e- innovative services 2. Set up a operatio applications in all for all Kenyans technology park nal by sectors of the economy, 3. Create local 2019 such as e-education in content to be 100% in all levels of education accessed by users of all (100%), broadband sectors 3. e-health in at least 90% of all health facilities Capacity To build adequate Build or enhance the Continu 1. All Kenyans have an 2019 Building and capacity to deploy capacity of existing ous; appreciation of the Awareness; broadband and institutions to be potential of broadband utilize broadband Broadband centres 2. All Kenyans are able services in all of excellence 100% to use broadband for 2022 sectors by all socio-economic Kenyans development Policy, To ensure orderly 1. Approve the NBS 100% by 1. National 2019 legislative, deployment and and associated BB 2019 development policies regulatory and use of broadband 2. Harmonize across all sectors are institutional for socio-economic policies, 100% by harmonized with regard environment development of legislation and 2019 to broadband strategy Kenya regulation 2. Broadband is 2019 embedded in the universal goals of all sectors of the economy Finance and To ensure 1. Implement fiscal 100% by There are adequate 2020 Investment adequate incentives for 2019 finances to implement resources are broadband broadband available for deployment investment in 2. Implement PPP for broadband broadband deployment Privacy and To ensure that all 1. Enact laws and 100% by There are laws that 2019 security of Kenyans are safe formulate 2019 support and safeguard

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networks and and secure while regulations with citizens while operating services; using online regard to online services electronic transactions and cyber security Governance of To ensure 1. Set up the NBC 100% 1. National Broadband 2019 broadband adequate and 2. Set up the Council is set up effective Broadband 100% 2. Broadband Delivery 2019 governance of all delivery unit unity is established broadband matters 3. Set up task 3. program (thematic 2019 and delivery in teams (working 100% area) task teams Kenya groups on each (working groups) BB thematic with clear roles and area) responsibilities for broadband development are in place

6.3 Risks and Mitigation Strategies

Implementation of this strategy may be affected by various risks. In order to successfully implement the strategy, these risks must be managed. Table 24 shows the risks, assessment of their seriousness and mitigation strategies.

Table 12: Risks and mitigation strategies

Risk Details Risk Mitigation strategies Stakeholder Assessment roles Insufficient ▪ Lack of private sector High ▪ Provide incentives for investors e.g. funding of Investment through fiscal and regulatory incentive Broadband ▪ Competing Government priorities ▪ Prioritize broadband Poor ▪ Project planning and High ▪ Adopt program approach implementation management ▪ Adopt project management discipline of broadband ▪ Coordination and delivery ▪ Create and operationalize the strategy National Broadband Council (NBC) and the BDU (M&E) at the NCS Lack of ▪ Delays in enacting High ▪ Government agencies to supportive legislation operationalize legislation ▪ Government policy and ▪ Delays in ▪ Enforcement of legislation (Legislate legal operationalizing ▪ Enhance international collaboration and framework ▪ enacted legislation Enforce), Spectrum ▪ Insufficient spectrum to Medium ▪ Expediting frequency re-farming ▪ Service availability deploy last mile solutions exercise to optimize the utilization of Providers the already allocated spectrum for (Implement), deployment of mobile broadband ▪ Consumers ▪ Provide spectrum for 5G (Benefit High cost of ▪ Cost of infrastructure Medium ▪ Issuance of guidelines and implementation ▪ Duplication of regulations for infrastructure sharing infrastructure ▪ Provide tax incentives ▪ Lack of coordination of ▪ Use of alternative technologies such civil works to ICT works as satellite ▪ Use of outdated technologies Slow uptake of ▪ Lack of relevant content Medium ▪ Development of relevant content broadband ▪ unaffordable broadband ▪ Provision of tax incentives/subsidies services devices and services for devices ▪ Low awareness ▪ Promotion competition

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Risk Details Risk Mitigation strategies Stakeholder Assessment roles ▪ Low ICT literacy ▪ Implement capacity building strategies including awareness creation Service ▪ -Maintenance of Medium ▪ Enforcement of Service Level availability infrastructure Agreements (SLAs) ▪ -Vandalism ▪ Enactment of legislation for broadband as a critical infrastructure Governance ▪ Absence of an effective Medium Within the first quarter of the launch of and delivery governance and delivery NBS 2023: structure structure for the NBS ▪ Establish a National Broadband Council (NBC) ▪ Establish a Broadband Delivery Unit (BDU) at the NCS Insecurity ▪ Northern frontier, which High Enhance security and patrols in the also represents affected areas broadband access gaps, is faced with a lot of insecurities. Without enhancing security it will be difficult to achieve the targets of expanding broadband to the mashinani DNS outages ▪ Unreliability of Internet High ▪ Ensure availability- have services redundancies built into Internet ▪ Paralyzing critical infrastructure infrastructure ▪ Restrict access ▪ Attacks on enterprise ▪ Hide primary servers websites ▪ Think locally ▪ Ensure integrity of data by for example implementing Domain Name System Security Extensions ▪ Proactive monitoring of the DNS Typosquatting ▪ Interference with normal High ▪ Educating users operations ▪ Installation of SSL certificates ▪ Registration of trademarks ▪ Buying multiple variations of your domain name

GLOSSARY

Backhaul – A portion of the network comprising the intermediate links between the core network and the access network that connects to end user premises Broadband - High-speed data transmission, such as cable, ISDN (Integrated Services Digital Network), and DSL (Digital Subscriber Line). It is generally taken to mean bandwidth higher than 2 Mbps. Affordability: Entry-level Internet available for 2% or less of GNI per capita by 2022 Convergence - The integration of industries that up to now have largely operated separately from one another, but meshing along a specific value chain or bundling from different services at the applications end. Convergence is driven by the digitization of the presentation, transmission, storage, processing and creation of information. Electronic Commerce (e-commerce) - The conduct of business in goods and services, with the assistance of telecommunications and telecommunications-based tools

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Electronic Government (e-government) - Government’s use of technology, particularly web-based applications, to enhance the access to and delivery of Government information and services to citizens, business partners, employees, other agencies, and government entities. Data Classification - The process of organizing data by relevant categories through tagging, so that it may be used and protected more efficiently. The classification process makes data easier to locate/search and retrieve, eliminates duplication of data and ensures data security. Digital Literacy: Ability to use Internet for socioeconomic purposes upon training Information and Communications Technology (ICT) - Any communication device or application, encompassing radio, television, cellular phones, personal digital assistants, computer and network hardware and software, satellite systems and so on, as well as the various services and applications associated with them, such as video conferencing and distance learning. ICT refers to the technologies, including computers, telecommunications and audio-visual systems that enable the collection, processing, transportation and delivery of data, information and communications services between users. The ICT can be viewed as a combination of electronics, telecommunications, software, networks, and decentralized computer workstations, and the integration of information media, all of which impact firms, industries, and the economy as a whole. ICT comprises various “communication equipment” which include radio, TV, communication equipment and software among others. Information and Communications Technology Policy (ICT Policy) - is an official document /specifying Kenya’s aspiration regarding broadband ICT and how these aspirations can be achieved; Information Society - A term used to describe a modern population that is conversant with – and actively using - information and communications technology. A society where the creation and exchange of information is a predominant social and economic activity Information Technology (IT) - The study, design, development, implementation, support or management of computer-based information systems, particularly software applications and computer hardware Key performance Indicator (KPI) - A set of quantifiable measures used to measure or compare performance Latency – The time it takes, generally measured in milliseconds (ms), for a source to send a packet of data to a receiver Open access - The possibility for third parties to use an existing network infrastructure to provide services on fair, reasonable and non-discriminatory terms, rather than on encouraging infrastructure competition

Open access network - A network that allows third parties to make use of the infrastructure owner’s network assets

Passive - Refers to network elements without an active electronic component; typically comprising civil engineering infrastructure, ducts, dark fire and street cabinets Public Internet access point (PAP) - a location which dispenses free information in various forms; and also offers users a PC based terminal for Internet access. Information kiosks form part of Multi- Purpose Regional Community Centres. Public Private Partnerships (PPP) - An approach to facilitate cooperation between the public and private sectors in delivering important Government policy initiatives. PPPs can take various forms. Quality of Service (QOS) - A set of standards and mechanisms for ensuring a given quality of performance of services provided over the network.

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Regulatory Authority - A public institution established by legislation to control, by using rules and regulations, the provision of telecommunications, broadcasting and postal services. Small and Medium Enterprises (SMEs) - Smaller enterprises with an annual turnover of not exceeding N$10 million; these enterprises are fully owned by Namibian citizens. Telco-OTT (Over-The-Top) is a conceptual term that describes a scenario in which a telecommunications service provider delivers one or more of its services across all IP networks, predominantly the public Internet although sometimes telco-run cloud services delivered via a corporation's existing IP-VPN from another provider, as opposed to the carrier's own access network. It embraces a variety of telco services including communications (e.g. voice and messaging), content (e.g. TV and music) and cloud-based (e.g. compute and storage) offerings Universal Access - Accessibility of a telephone, not necessarily in one's home, but through some means such as a public pay telephone or community resource centre providing telephone facilities. The objectives underlying the concepts are the similar, to make available and maintain affordable communications services. Universal service - Service available, as far as possible, to all the people without discrimination on any basis with adequate facilities at reasonable cost; a Universal Service Provider (USP) provides these services. Universal Service Obligation (USO) - Specific obligation imposed by postal law or license on the postal operator to provide a defined set of postal services to a specified community and locality usually under a regulated pricing system. In the event that such obligation results in financial loss of the postal operator a transparent compensation mechanism has to be put in place.

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APPENDICES

Appendix I: Implementation Plans Appendix I-1: Policy, Legal and Regulatory Environment Table 13: Strategy for Policy, legal and Regulatory Environment

Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility Broadband Promotion of Increased investment Formulate policies and Increase in N/A 50% increase CA; market Competition in broadband enact of legislation that investment in by 2022 MoICT/NCS and encourage investment broadband Investment ecosystem areas Revised and Implement technology Harmonized N/A 100% by 2019 County harmonized charges and Service neutral rules deployment of government; e.g. for licenses such infrastructure CA; Roads as for NFP and way Policies/Regulations Authorities leave /Laws permits/business permits Fair competition in Proactive monitoring and - Implement an N/A 100% by 2019 CA/CAK/Adve broadband addressing of anti- Advertising Code of rtising competitive behaviour Conduct Continuous authorities - Sanction unfair monitoring Ensure fair competition competition (Practices such as behaviour market collusion, predatory pricing, punitive pricing at the intermediate markets, and infrastructure hoarding in violation of public interest should be deterred and sanctioned)

Review of Advertising Code for fairness so as to avoid ambush marketing and strengthen rules on comparative marketing.

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility Affordable broadband • Tax and licensing Finalization of the N/A Q2/2019 CA, TESPOK incentives draft infrastructure sharing regulation • Infrastructure sharing Kenya as a Data Develop autochthonous Policies, legislation N/A Policy enacted CA/ MoICT centre hub legislation that will make and regulations for by 2021 Kenya a haven e.g. as a content provision data centre hub that make Kenya a content/ data haven e.g. as a data centre hub Review of KICA Fair N/A Review Inter-platform Competition Regulations Inter-platform compete by CA/MoICT competition 2010 to include Inter- competition is 2021 platform competition included in the Fair Competition Policy Institutional Integrated Adoption of common Review the NBC and BDU is in N/A Q2/2019 CA/ MoICT framework deployment of technical standards Roads/Building Code place broadband and for operation of etc. for Harmonization delivery of telecommunications broadband infrastructure to be adopted by all government entities Harmonized Update Critical Enacted Critical N/A Enacted MoICT legislation pertaining Infrastructure legislation Infrastructure Bill legislation by to ICT infrastructure to include broadband as 2020 critical infrastructure Incorporation of Collaborative -Amendment of N/A Q3/2019-20 County broadband planning development of a Building Code to Government/ into cities integrated infrastructure include provision of CA/ planning/building master plan that ICT infrastructure MoICT/Lands/ plans/road plans etc. incorporates telecom within the building Urban infrastructure code/KICA; Planning/Cou ncil of -Roads Act to cater Governors for ducts when building roads, and damages for

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility destructions of operators’ infrastructure/

-Lands Act/Land's Registration Act to standardize the cost of wayleaves/County --Legislation for deployment and harmonization with national legislation Secure -Protection of maps, - Develop a -Critical Information N/A 100% of Ministry of broadband plans, permits and all mechanism for Infrastructure necessary/en Transport/ related storage and regulation for ICT abling laws by National Land documentation retention of critical broadband 2020 Commission/ pertaining to critical infrastructure MoICT infrastructure information/data

-Adoption of common - Domesticate the -Collaboration and -At least two CA technical standards Tampere Convention Cooperation on collaborations and facilitation of the on deployment of International in 2019; then development of resources during standards Continuous international, regional emergencies and national -100% by backbone that are - Domesticate the -Having a set of laws 2021 secure Budapest that distinguish Convention on Kenya from other Cybercrime jurisdictions and makes Kenya market more attractive Spectrum Effective Avail spectrum to Expedited deployment of Reviewing of Radio N/A 100% by CA/ MoICT Allocation Allocation and licensees for services requiring Communication & Q4/2019 Assignment of bandwidth intensive spectrum Frequency Spectrum Spectrum broadband services Regulations 2010 Develop a regulatory Spectrum recovery for Reviewed KICA Radio N/A 100% by 2019 CA/ MoICT framework that non-usage and Frequency & promotes optimal use reassignment of such Frequency Spectrum of spectrum and spectrum Regulations 2010 to make spectrum

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility hoarding, idling (none allow for utilization) and reassignment warehousing impossible. Optimal Spectrum Re-farming, reassigning Effective N/A 2020 CA Assignment and reallocation of enforcement of Re- spectrum frequencies to farming, reassigning facilitate the rollout of and reallocation of new wireless broadband spectrum technologies capable of frequencies to delivering high speeds at facilitate the rollout the access layer of of new wireless broadband networks broadband technologies as in KICA Radio Frequency & Spectrum Regulations 2010 Spectrum Maximize value Market based Finalized of ICT policy Revised National N/A Finalized and MoICT management and use of spectrum allocations guidelines for spectrum Information and launched by spectrum management to be Communication ICT 2020 reflected in the National policy 2006 to Information and include spectrum Communication ICT management Policy which should planning to reflect reflect KICA Radio KICA Radio Frequency and Spectrum Frequency & Regulations Spectrum Regulations 2010 Offering tax Incentivize rollout of fiber Single policy dealing N/A 100% by 2019 MoICT incentives to reduce infrastructure; with all matters ICT the cost of addressing the deployment of Encourage the complete broadband telecommunications deployment of services ecosystem infrastructure; in rural areas through licensing the CBOs and Lower licensing fees harmonization of policies for the first entrant dealing with spectrum i.e. wireless broadband spectrum policy with

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility Subsidized payment National Broadband of spectrum license Policy and usage fees for public protection and relief services and research and development initiatives;

Open Access Facilitate Expedited issuance of Develop policies that -Amendment of N/A 100% by 2020 Parliament, Framework access to right way leaves to provide open access to Building Code /KICA; Ministry of of way rights facilitate fast government sponsored Roads Act/Lands Transport/ deployment of projects and for CBOs Act/Land's National Land infrastructure Registration Act to Commission/ particularly for cater for access of MoICT housing projects right of ways

-Open access regulations Ease of doing Facilitate ease Simplification of Review timelines in Average time taken N/A Half the time CA, Council of business of doing infrastructure statutes pertaining to to obtain taken by 2019 Governors/ business deployment approval deployment of authorization County processes infrastructure Reduce Government/ the number of Ministry of procedures and Lands/ documentation to Ministry of obtained before Roads approvals Broadband Increase Increased BB Encourage infrastructure % coverage N/A 50% by 2022 CA/MoICT coverage in broadband coverage sharing in the unserved rural and coverage in and underserved areas Underserved Kenya areas e.g. slums Fiscal incentive plans Issuance of special Finance Bill Inclusion N/A Amended by National and for enhancement and incentives by in National and 2021 County improvement of any government such as tax County Budget Treasuries layer within the rebates/subsidies broadband

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility infrastructure value chain Network Facilitate the Enactment of legislation -Review of N/A 100% by 2019 MoICT, Security protection and that focuses on security Information Security Parliament safeguard of cyber and advocates for data Policy and Cyber space and data privacy and protection, Security Regulations transmitted through hence requiring upgrade this avenue of laws to cover new -Enactment of Data (networks) areas such as electronic Protection legislation transactions, e- commerce and cyber security etc. Telecommunic Broadband is a Include broadband as a Finalization of Critical N/A 100% by 2019 MoICT/AG ations to be critical infrastructure critical infrastructure in Infrastructure Bill considered as appropriate laws and critical regulations infrastructure Incorporation of Existing Taskforce Cyber cooperation to N/A 100% by 2019 MoICT/AG telecommunications (2018) in place for be addressed in in critical review of Critical Infrastructure infrastructure plan/distributed ledger Plan/Distributed plan/distributed to finalize the review of Ledger policy ledger critical infrastructure framework plan for broadband Cross-border Enhanced and Effective cooperation Signing and Reciprocity N/A Continuous National cooperation on effective cross- on cross border and operationalization of agreement/Bilateral Cyber cyber security border transnational nature treaties that facilitate Investment Coordination cooperation on of the cyber space cross border cooperation Agreements/ Authority cyber security on cyber threats Multilateral issues Agreements Maintenance of a Enact Cyber Security Reviewed N/A 100% by 2019 MoICT/Parlia cyber-environment Law, Regulations, and Cybersecurity ment that encourages Policies to protect and regulations/ National economic prosperity secure the cyberspace ICT Policy and certainty of and telecom transaction execution infrastructure while promoting efficiency, innovation, safety, security,

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility privacy and business confidentiality. Capacity Establishment Broadened -Enforcement of Mutual Adoption/Ratification N/A 100% by 2019 AG/Ministries, Building on of a team of knowledge on cyber Legal Assistance of the AU convention Presidency Cyber local experts security/ ICT in the on cyber security and Cybersecurity with country -Review and ratify the AU personal data competence in convention on Cyber protection; local data the prevention, security and personal protection legislation detection and data protection proactive interdiction of cyber threats and attacks, as well as, in forensic recovery of systems after attacks. Harmonized Effective exchange of Ensure visibility of the Implementation of N/A 100% by 2019 CID; CA; legislation on information/best work carried out by Section 6 of the National cyber security practice/ reciprocal existing bodies such Computer Misuse Computer and to facilitate enforcement of computer emergency and Cyber Crime Act Cyber Crimes cross border judgments to avoid response team (CERT) Coordination cooperation in double criminality Committee the fight against cybercrime Carbon To strengthen Effective monitoring Development of national Launch of National N/A 100% by 2020 Ministry of Footprint approaches for of carbon footprint by climate change action Climate change Environment/ Measurement climate change the telecom sector plan action plan NEMA for ICT Sector management To promote Policy and regulations Finalization of E- waste Implementation of N/A 100% by 2020 Ministry of sustainable on electronic waste Management EMCA-E-waste Environment/ development menace Regulations for management NEMA facilitation of sustainable Regulations environment

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility Monitoring and To facilitate Timely Regular meetings of Quarterly meetings, N/A Four meetings Thematic area evaluation accountability implementation of technical working groups at least 80% of per annum task working and provide the action points for monitoring and quarterly targets met groups expertise on evaluation of progress in (TWGs) deliverables enforcement of strategy Infrastructure Inclusion of Ease of access of ICT Incorporation of ICT Regulations for N/A Enactment of CA/ National specifically PWDs in the services to PWDs regulations catering for PWDs Act/regulation Council for catering for National PWDs within KICA; by 2020 PWDs Persons with Broadband Customized telecom Disabilities Strategy Solutions for PWDS Data Protection To ensure data Data Protection Act Multi-stakeholder Increased online No Act Enactment of Parliament/ integrity and involvement in drafting uptake operations Act by 2020 Stakeholders legal protection of the Bill during Adoption of Convention processing and use of data for the Protection of Individuals with regard to Signatory of the Automatic Processing of Budapest Convention Personal Data Broadband as a To elevate Broadband as a Enactment of enabling -Installation of Critical Enact with MoICT/ utility broadband critical Infrastructure Laws, Amendment of broadband Infrastru necessary Parliament status to that Laws (Road Act, Critical infrastructure as part cture Bill adjustments of utilities such Infrastructure Bill) of the construction of Tabled as necessary as electricity Building Code roads, buildings by 2019 and water

Coordinated No broadband Harmonization of existing -Uniform way leave standard Have a governance and legislation to facilitate fees across counties way standard deployment integrated BB leave schedule of development -Inclusion of charges fees broadband in National and county integrated Digital Inclusion development plans -Review of tax policies for -Investment in broadband (e.g. Tax broadband at exemption for national and county levels

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Sub Issue Objectives Outcome Strategies KPI Baseline Target Responsibility Broadband Devices) to improve affordability -Broadband solutions for all -Affirmative legislation and regulation targeting special interest groups such as PWDs Infrastructure To promote Collaboration Regulations on Reduced duplicity of N/A 80% reduction CA, TESPOK sharing infrastructure infrastructure sharing resources of duplicity by sharing 2022 Development of master Reduction in plan for integrated infrastructure 30% reduction infrastructure deployment costs on deployment Migration to new costs by 2021 technologies Continuous

Cyber Security To ensure -Protection/safeguard Cyber (Information) -Increased cyber N/A Sensitization CA security online of users online security regulations security awareness of populace on and offline the (infrastructure) -Protection of -Reduction in Cybercrimes broadband financial losses Act 2018 infrastructure attributed to cyber security breaches

-Reduction in user cybercrime Enabling Ensure an Spectrum Allocation Finalization of Spectrum Spectrum policy N/A 100% by 2019 CA/ MoICT Environment enabling, for Broadband Policy Framework issued responsive, progressive Harmonization of the Relevant policies, legal legislative, regulatory legislations and environment and policy landscape regulations harmonized

87 The National Broadband Strategy 2018-2023

Appendix I-2: Infrastructure and Connectivity Table 14: Strategy for Infrastructure and Connectivity

Sub-Issue Objectives Outcomes Strategies KPI Target Responsible

Broadband Increase Access Improved quality •MNOs to accelerate nationwide ▪ % 3G/4G Coverage ▪ 3G coverage by 2020, to MoICT Coverage to broadband of life in the way 3G and 4G rollout - 94% of population CA & MNO coverage to citizens work, live Safaricom, everyone and learn. Service providers and ▪ Broadband ▪ Tertiary institutions—100% Airtel, Reduce the Government to accelerate fixed connectivity to connected by 2020 KENET, Liquid Digital (Fiber) Connectivity tertiary institutions, ▪ Primary schools: 50% by Telekom, broadband divide health and schools 2022 Zuku, JTL, ▪ Public Health facilities Telkom Kenya 100% by 2020; KPLC other ▪ public sector organizations- providers 100% Spectrum review on allocation ▪ Spectrum allocation ▪ Reviewed spectrum and pricing to support broadband review allocation voice centric spectrum modeling e.g., 450 MHz, 700 MHz, 2.6 GHz, 3.5 GHz • 5G development workgroup in ▪ 5G Trials. ▪ 5G trial by 2022 place Security of Increase Reduce - Increase surveillance ▪ Number of ▪ Secure 100% of all BB National police broadband surveillance to vandalism, infrastructure- locations (including service (NPS) infrastructure secure BB ensure related vandalisms counties) by 2020

infrastructure in consistent Government to enact legislation ▪ BB safeguard ▪ Enacted legislation by urban and rural availability and to safeguard Broadband as legislation 2020 areas reliable use critical infrastructure

Engage Police to provide security ▪ Number of Counties ▪ 47 counties by 2023

for the facilities and Sub Counties Covered with NPS County surveillance System Governments Sensitize communities and work ▪ % of communities ▪ 50% countrywide by 2023 with them to guard BB sensitized on CA infrastructure security of BB

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Sub-Issue Objectives Outcomes Strategies KPI Target Responsible

Include county Government in the ▪ Number of counties ▪ 25 counties by 2025 security of BB in their areas with BB surveillance

Government to develop national ▪ Number of Counties ▪ 47 counties by 2023 strategies for reducing risks to with BB surveillance Broadband as a Critical Infrastructure

Coordination - Provide a Reduced cost of •Enactment of the broadband ▪ Broadband ▪ Laws enacted by 2020 Parliament and harmonized and deploying and Infrastructure legislation (Way Infrastructure complementa enabling operating leaves & Building Code Review) enabling laws ry services environment for broadband enacted ICTA and Survey infrastructure networks Integrated Infrastructure global ▪ Inclusion of BB as ▪ Integrated GIS data by of Kenya to fully deployment information system (GIS) ( the critical 2022 Implement KNSDI- Kenya National Spatial infrastructure in KNSDI - Avoid Data Infrastructure) legislation duplication of BB MoICT/ Ministry infrastructure Integration of BB infrastructure in ▪ % increase in access ▪ 30 % increase in access in of Transport, road and power connection of BB to underserved and unserved Infrastructure, underserved areas areas through integrated Housing and road and power projects Urban Synchronized planning of civil and ▪ Harmonized way ▪ National policy and Development ICT data projects leaves in counties regulations on wayleaves collaboration KENHA, KURA Promote and ensure operators ▪ Infrastructure ▪ 100% infrastructure share common infrastructure. sharing regulations sharing by 2020 KERRA, NCA Government to provide ▪ Number of ▪ An incentive mechanisms CA, National rebates/tax incentives for incentives for complementary Broadband operators providing infrastructure Council complimentary services (utilities) in marginalized areas

Demand Provide Increased • Promote local production of ▪ No of local ▪ 1 by 2023 Government Stimulation accessible and demand for and access devices producers for Agencies/Public affordable use of access devices Sector broadband broadband Government to provide subsidies ▪ Tax subsidy policy ▪ Enacted tax subsidy law by services for access devices for access devices 2023

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Sub-Issue Objectives Outcomes Strategies KPI Target Responsible

services to all Promote and avail online local ▪ Number of online ▪ 20 by 2023 County citizens content (e.g. e-Government local content Governments information, eLearning, Online available county services) to spur demand.

Public Wi-Fi/ Hotspot access ▪ % of wards covered ▪ 100% by 2023 (affordable Wi-Fi) in every ward

Policy, law Safeguard Reliable and high Review of The Kenya Road Act ▪ % increase in ▪ 100% by 2023 MoICT and regulation infrastructure availability connectivity to assets and infrastructure NOFBI Ministry of assist in ▪ Review Building Codes to include ▪ Building code in ▪ Reviewed building codes Transport, accelerating An enabling broadband ICT provision place by 2023 Infrastructure, rollout regulatory and Housing and administrative Urban environment that Development, CA facilitates broadband rollout

People Promote social Stimulate uptake • promote a social culture of ▪ Level of awareness ▪ 100% by 2019 MoEST (TSC) goodwill of of services on protecting infrastructure of broadband broadband the broadband MoICT project ICT Training at primary and ▪ Broadband ▪ Broadband curriculum in secondary schools curriculum for place by 2020 County primary and ▪ government secondary school NBC (and BDU) ICT Training at constituency ▪ Number of training ▪ 2 trainings per county by Innovation hubs conducted 2023

NBS Strategy and implementation ▪ NBS ICT Forum in ▪ 2019 (continuous) review meetings to be held per every County county with government and ▪ stakeholders

Enablers Enablers to Increased • CDNs for local Content Hosting ▪ % increase in CDNs ▪ 50% by 2020 KICD, enhance digital broadband broadband uptake and • Build and increase cache for ▪ % increase in local ▪ 50% by 2022 ICTA consumption international Content (Facebook, content caches ▪ Google, Netflix), Service providers

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Sub-Issue Objectives Outcomes Strategies KPI Target Responsible

uptake and Multiple diversity in undersea ▪ No of Increased ▪ 1 by 2023 experience cable International Fiber connectivity Connections Fiber connectivity for cross border ▪ No of ▪ 2 by 2022 connectivity (Ethiopia, Uganda, Regional/cross Tanzania, South Sudan, Somalia border BB connectivity Utility Companies e.g., KPLC to ▪ % coverage of power ▪ 90% by 2020 assist in provision of diverse grid supply nationwide ▪ supply to assist towards data center resilience.

Publication of Data Center ▪ No of certified and ▪ 2 by 2022 standards standardized data centers Open Access Provide coverage Increased access - Build facilities and BB ▪ % of duct coverage ▪ 50% by 2022 MoICT to National and connectivity to all citizens Installation roads, rails and ducts on all roads/rails broadband to all citizens for fiber Ministry of Transport, Provide Open - Enactment of National ▪ Enacted National Broadband Infrastructure Infrastructure, Access Fiber on Broadband Infrastructure Act. Broadband Act BY 2020 Housing and major roads Infrastructure Act Urban National Broadband Council to ▪ NBC in place ▪ NBC in place after 2 Development coordinate broadband months

County and National Government ▪ Policy and ▪ Open Access Regulations to lay infrastructure on Open regulations on Open Access (4P= Pervasive public access to BB pipes in-perpetuity) backbone infrastructure

91 The National Broadband Strategy 2018-2023 Appendix I-3: Broadband Services Application and innovation Table 15: Strategies for Broadband Services Application and innovation

Objectives Outcome Strategy KPI Target Responsibility Quality of - Enforce SLAs Level of SLAs enforcement 100% enforcement CA and Service Providers service - Enforce the critical level by 2019 infrastructure law to curb % Reduction in cases of BB vandalism vandalism Less than 5% vandalism by 2022 Accessibility Affordable BB Subsidize content provision Reduced/limited entry barrier of Enacted Regulatory Treasury, CA, and for all citizens Create an enabling competitive service providers policy for Telco sector MOICT,NCSC Affordability environment to attract competitors Ensure broadband connectivity in every sub-county Demand for Increased Reduce taxes on broadband • % of tax reduction to BB service • 5% tax reduction by Multi stakeholder broadband demand for BB provision service providers 2023 services services Build capacity (education) to • No. of campaigns and • 2 public awareness enhance demand awareness creation campaigns campaigns by 2022 on BB Cost and Incentives for Concessions on universal • % of rebates/tax incentives for • Zero rating for National Treasury, CA sustainability in service service obligation rebates operators providing complementary service and related agencies delivery of provision in complementary services provision by 2023 services underserved (utilities) in marginalized areas. areas • % proportion of private projects • 30% of all projects supported by government Several Automation of All county and government % of National government 100% by 2023 Government services still all services services digitized services online Agencies/Public Sector manual Introduction of a carbon tax for ▪ % of County Services 100% by 2022 those still transacting on paper County Governments % reduction in paper transaction 80% by 2022 Consumer Confidence Enact legislation for consumer ▪ Consumer protection Policy Policy in place by 2023 Multi stakeholder protection and and privacy protection ▪ Awareness creation on security online Enforce consumer protection consumer protection guidelines 2 campaigns by 2020 guidelines Use of ICT Widespread % use of ICT in financial sectors 100% by 2022 National Treasury and financial utilization of Service providers

92 The National Broadband Strategy 2018-2023 services and ICTs in the -Promote and expand the use of % increase in financial systems 100% by 2022 application delivery of ICTs in government related security financial financial transactions % sharing of ICT financial 100% by 2023 services -Tighten security of financial application systems through cyber related legislation and enforcement -Promote the use of shared ICT financial application amongst MFIs/SACCOS/SMEs -Promote collaboration among service providers within the Financial sector e-transaction related legislation Legislation to protect e- MoICT, National Treasury Ease the process and simplify commerce and increase its use 1 policy enacted by and parliament the understanding of financial amongst Kenyans 2022 services Support for Operational ICT Create and implement a seed • Number of innovations 100 innovations by research and broadband funding model for the funded 2022 innovation research and innovations hubs • The number of funding innovation sources 10 sources by 2023 centres Create an enabling policy and • National Intellectual and regulatory framework to support Industrial Property Right research and innovation. policy and legislations Policy enacted by 2023 enacted Support IPRs • COM Strengthen the existing innovation hubs and research centers

Information sharing across 1 per quarter research centres

Commercialization of the innovations within the country

93 The National Broadband Strategy 2018-2023 Appendix I-4: Content and innovation Table 16: Strategy for Content and innovation

I Issue Objectives Outcome Strategy KPI Target Responsibility

Creation of To have 5% of total At least 5% of the total Establish No. of incubation 1 per county by MoICT employment workforce employed workforce employed in the incubation/empowerment centers 2022 in digital content and development of content driven centers in counties and County application services in 5 years develop an ICT-centric Governments development innovation framework

Develop an ICT-Centric Innovation 1 by 2019 CA Innovation Framework framework in place MOICT

Put in place incentives for Policy to incentivize 100% by 2019 CA innovation and content innovation

Digital content for To 100% customization of school Prioritize implementation of N/A 100% by 2021 KICD all Kenyans develop/customize content for at risk groups solutions for universal content for within 3 years accessibility Ministry of disadvantaged Education, Science groups and Technology

Quality of local To ensure 20% of Increased global access to Private sector support No. of successful At least 4 per year MoICT content local content local content within 5 years through incentives for business (broadcast) is of business partnerships partnerships international quality supported

Promotions of local content No. of local content At least 100 by Kenya Tourism internationally pages available 2020 Board, MoICT online Kenya yearbook

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Sectoral content To have Sector increase the availability of Establish and utilize an % Utilization of the 100% by 2019 Kenya National specific (e- digital local platforms innovation fund fund Innovation Agency government, e- commerce, e- The National learning, e-health, Treasury IoT and Robotics in Manufacturing) local Develop Private Partnerships No. of Successful At least 1 per year MoICT digital or digitally for empowerment PPPs enabled work platforms available Develop digital broadcast for No. of digital 4 programs per year CA, Kenya News youth and heritage channels broadcast media Agency created

Local content and Local content fintech Increased global access to Engage with the private Policy to support Policy enacted and MoICT, IBM, SAP, application APIs/platforms with local applications within 5 sector through incentives for incentives implemented by Oracle, international aspects years business partnerships 2020

Authentication To have a Content Management System Develop local Content Developed CMS Developed and in MoICT management Management System (CMS) Management System use by 2022 system for authenticated content with digital rights

Local heritage To have language At least 10 local language used Certification of language No. of certified local At least 10 by 2022 CA packs for 10 Kenyan in applications packs languages local languages for MoICT various content, services and Training and up scaling No. of trainings 4 carried out each MoEST To be the Swahili learning solutions conducted year international certifying body Swahili learning certification Modality of Modality identified MoEST certification; by 2020 and in top placement globally in 2 in global Swahili certification placement by 2020

Digitization of improve efficiency of Government services with Digitize Government % of government 60% by 2022 MoICT government government service more than 100,000 services services digitized services provision transactions per annum ICTA digitized

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Content haven To encourage local - Increase big data available to Attract investment in Local No. of data centers 3 MoICT hosting33 Kenyans for analysis that is Data Centres sector specific - education, health, agriculture, Enhance and promote Data KDAR Law Law communicated MoICT manufacturing housing Sovereignty laws - KDAR law to stakeholders amongst others makes Kenyan data held CA Media council internationally accessible to - Increase data centre capacity Kenyans in Kenya - 100% of government, Interoperability of all citizen % of interoperability 50% by 2022 MoICT education and research data data sets digitized and hosted in Kenya Encourage utilization of % of local data set 100% by 2022 MoICT - To develop standards for all existing local Data Centre utilized citizen data Capacity

Exploit opportunities in GDPR Domestication of Completed by 2022 CA refugee data - (Develop 3rd GDPR obligations party verification to ensure MoICT compliance to GDPR and other laws)

All Kenyan languages To have all Kenyan content in Ratification of the language N/A Programmes in all MoICT, CA, KBS have content multilingual formats policy (Multilingual contact local languages by centers for public service 2023 Availability of local language delivery) content

Digital certification Digital certification Digital certification policy Develop the digital Digital certification Policy developed CA, MoICT centers for academic certification policy policy and rolled out credentials nationally by 2022

To Enforce IP - IP rights enforcement Enhance and promote IP Policy Policy enforcement CA, MoICT , Kenya Intellectual Property protection of Intellectual and sensitization film classification Rights – Visibility, Property rights ongoing annually

33 This will enable attraction of GDPR refugee data centres in Kenya which will have public data fields (e.g., name, ID, gender), standard keys. It also involves adopting of appropriate format standards accompanied by development of Data Sovereignty Laws and Kenya Data Access Regulation (KDAR); and ensuring that any data about Kenya is open for use by Kenyans and that certified checks of foreigners (background checks) are done

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Registration, board, Kenya Film Protection Commission,

To develop Policy for Content Policy for Development for standards No of standards At least 2 by 2022 CA content for content development developed - Full digitization of national archives Certification of language No. of certified local Develop 4 by 2022 KICD - promotion of open data packs language packs - content and data protection Develop and Enforce an open Open Data Policy To have in place a CA, MoICT (IP, privacy and security) Data Policy policy and - registration, publication and implement it by automatic protection of all 2021 Kenyan content

Initiatives and Activities Table 17: Broadband Service initiatives and Activities

Issue Objective Outcome Strategies Quality broadband - Ensure high availability Improved quality • Use of Universal Service Fund to extend broadband network Services - Ensure reliability of of life in the way penetration. broadband services citizens work, live • Enhance regulatory oversight with respect to quality of service. - Ensure relevance of and learn •Encourage and promote creation of relevant and quality content broadband services • Regulatory oversight through use of management of service level A rich, agreements. interruption free • Enforce the critical infrastructure law to curb vandalism of broadband broadband infrastructure experience • Measure quality of service Accessibility and Provide accessible and - Increased demand for • Government to provide subsidies for access devices Affordability of affordable broadband and use of broadband • Government to source funding and develop infrastructure broadband services services to all citizens services • Government to enhance fair competition by creating a level - Affordable and playing field accessible broadband • Promote local production of devices. services/content are •Government/counties to open information hubs at constituency available to all level

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- Broadband services are •Establish mechanisms to deliver services e.g. Cell on Wheels available to all nomadic, unserved and underserved communities Low demand and -Encourage consumption of There is sustainable • Provide affordable devices and digital content awareness of digital services demand and uptake for •Digital literacy programs Broadband services -Create awareness of digital products •Create awareness/publicity on available digital services available broadband • Create relevant and affordable broadband content services Cost and Harmonize costing between Affordable services are • Ensure cost effective spectrum for Wireless Broadband sustainability in national & county available to all citizens Networks. delivery of services government Coordinate • Government to provide rebates/tax incentives for operators infrastructure rollout with providing complementary services (utilities) in marginalized areas. other activities i.e. (power) • Cost sharing between government and private sector Continuous review of spectrum pricing Several services Digitize all government Efficient and convenient • Promote and avail online local content (e.g. e-Govt. information still manual services delivery of e-services and services) to spur demand across the country Prioritize rolling of • incentivize creation of digital content and services broadband services Encourage service providers to create and promote digital content Consumer Protect and enhance Secure broadband • regulations for consumer protection protection and consumer security and experience • innovation for improved security security protect consumers from • investment in secure technology exploitation • consumer education

98 The National Broadband Strategy 2018-2023 Appendix I-5: Capacity Building and Innovation Table 18: Strategy for Capacity Building and Innovation

Sub-Issue Outcome Strategies/Activities KPI Target Responsibility

Digital literacy Digital literate citizens Conduct a nationwide survey on the Percentage of schools and 85% of all schools PPP’s, KICD, learning levels in the across all ages, gender to status of the level of digital literacy of teachers trained institutions, NGO’s, country participate in a the country At least 1 in each KENET, M.O.E, knowledgeable society Expand the digital literacy program for Number of ICT training county by 2022 CA schools to include upper classes and centers secondary schools.

Implement a transformational digital Coordinated effort for All tertiary PPP’s, KICD, learning literacy program for tertiary institutions. capacity building for institutions by 2022 institutions, NGO’s, tertiary institutions KENET, M.O.E/CA Extend the services of the Huduma Number of digital Huduma All Huduma centers PPP’s, learning centers to include informal training to centers offering training by 2020 institutions, NGO’s, the general public on digital literacy and services KENET,M.O.E/CA/1IC e-government services. TA Design and Implement Mobile ICT No. of implemented All sub counties by PPP’s, KICD, learning centers at the sub-county levels to working digital mobile 2023 institutions, NGO’s, include informal digital literacy training. centers KENET, M.O.E/C.A/ICTA Design and implement Multi-level digital Number of champions 20,000 champions PPP’s, MDA’s, champions’ capacity building program trained by 2023 Ministry of devolution for informal digital literacy training. Delivery of the informal digital literacy Number of programs -10 by 2023 MoICT, ICTA programs in local languages delivered through the local language Implement a transformational digital Number of government Trainers trained in PPP’s, ICTA learning literacy program into practice by officials trained 100% of public institutions, NGO’s, government officials. institutions by 2023 M.O.E/CA e-Government Improved access and Implement a nationwide e-Government Number of people All Kenyans with an ICTA, ministry of programs – efficiency in delivery of e- awareness and training programs accessing the government e-Citizen account by devolution, ministry of Creating Government services. services 2023 ICT, capacity for the Increase availability and use of e- Number of awareness and Reach all counties uptake of Government services training programs by 2021

99 The National Broadband Strategy 2018-2023 government Number of e-government At least 4 in the key services. services that have been services provided accessed online. by 2022 e-Learning Incorporation of e- Develop the hosting infrastructure and Percentage of relevant 50% y 2023 Universities, ICTA, programs learning approaches in online content for e-Learning. courses and curriculum KICD, KENET, curriculum delivery at all Realign the curriculum for e-Learning - developed Research and levels. (digitization and instructional design). innovations centers. Percentage growth in 25% by 2022 Design targeted e-Learning programs for KFC users of e-Learners (male marginalized regions and groups and female) Develop open shared national e- No. of counties reached 47 counties by Learning platforms with e-Learning 2021 Review current curriculum to include No. of sensitization 8 programs held by digital literacy training programs held 2023

Judiciary and More informed judiciary Implement a broadband sensitization No. of people trained 5,000 trained CA, ICTA, PPP’s law and law enforcers program people enforcement sensitization ICT Cyber A cyber security – aware Expand the national child protection Number of agencies All child focused CA, KENET, KE-CIRT, security population. campaign to include PP’s stakeholder involved government Universities, Security awareness Run nationwide cyber security agencies agencies, Research awareness campaigns Number of nation-wide At least 1 annually institutions campaigns Development of Increased number of Collaborations to develop the technical % of graduates benefiting 50% of all Universities, hands-on technically skilled skills from the attachment graduates Research institutions, technical skills personnel in the country. Strengthen the internship programs program KENET, ICTA, PPP’s Develop workshops/boot camps to Number of industrial All counties develop the technical skills collaborations implement the Retrain management on technical skills program by 2023 Develop a program for skills transfer for Number of technical 4 Bootcamps government workforce and experts. workshops held /Workshops Annually Number of successful 100% of all programs and programs by 2023

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Number of personnel who 47000 annually have completed programs

Emerging Innovations that leverage Creation of Training programs on Number of innovations At least 4 out of ICTA, Universities and technologies on emerging emerging technologies leveraging on emerging Universities and Research Centers, technologies Conduct a skills gap analysis on technologies Research Centres CA, NI 3C, A dynamic tech-savvy emerging technologies Testing within ICTA Innovations hubs ecosystem Encouraging research on emerging By 2023 technologies

The level of adoption of At least 1 annually emerging technologies Number of researches conducted on emerging technologies Sensitization on Informed citizenry on Develop sensitization programs and Number of sensitization At least 1 annually CA, ICTA, KFC, the legal policy existing legal policies campaigns programs and campaigns System online by TESPOK, ERB, NBS and regulatory and regulatory Develop an online central repository for An implemented online 2022 steering committee environment frameworks all thematic areas for the NBS central repository system (SC)

101 The National Broadband Strategy 2018-2023 Appendix I-6: Broadband Devices Table 19: Strategies for Broadband Devices

Objectives Initiative Outcome KPI Target Responsible Affordability Zero-rate smart devices Increased ownership of devices % VAT on smart devices 0% by 2019 KRA, MoF Low-interest loans for Increased ownership of devices m KES fund 500m by 2020 National Treasury smartphones Cost of data Affordable data bundles % of reduction in unit cost 1KES-2MBs by CA of data 2019 Expiration of data Renewable data bundles No, of available All data bundle CA renewable data bundle options options By 2019 Access Increase devices in libraries Increased access to broadband Number of devices per 20 by 2020 KNLS, library Establish Public Access Points at Increased access to broadband % of sub-counties with At least 25% of sub County Government, Sub-County offices PAPs counties by 2022 Service Providers Establish Public Access Points Increased access to broadband Number of PAPs 290 by 2022 MoICT, CA, County (PAP) at each constituency Government Government Devices in schools Broadband to improve Number of devices/1,000 30 by 2022 CFSK, National use education students Treasury Devices for health facilities Broadband to improve health % facilities with devices 100% by 2022 MoH, MoF, MoICT Devices in police stations and for Broadband to improve safety % officers with handsets 100% by 2022 NPS, MoF MoICT police officers % stations with devices 100% by 2022 Adoption Training and awareness raising in Increase ownership/use of Number of people 50k/yr by 2022 MoICT, CA villages devices reached Research health impacts of device Increase ownership/use of Number of research 3 by 2020 NEMA, CA usage devices completed E-Waste Establish local recycling facilities Reduced e-waste % components that can 80% by 2022 NEMA, CA, in PPP be recycled locally Provide incentives for take-back of Reduced e-waste Number of devices taken- 200k/yr by 2019 NEMA, CA devices back Counterfeit Use rebates to reimburse Reduced counterfeit devices No of counterfeit devices 90% reduction in KRA, CA, KEBS, ACA, legitimate devices counterfeit by Ministry of Industry, 2022 trade and Cooperatives Establish certifications for retailers Reduced counterfeit devices Number of certified All retailers by KEBS, retailers 2022

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Objectives Initiative Outcome KPI Target Responsible Local Develop feasibility study to attract Strategy for local ICT Number of studies 1 by 2022 MoICT, NEMA, CA Assembly contract manufacturers manufacturing completed New Devices Drive IoT through government Increase in IoT devices Number of IoT devices At least 10 by 2022 MoF, Ministry of procurement procured Industry, trade and Cooperatives Support of local IoT device Number of local IoT devices Number of local IoT Every local National Treasury, manufacturers made devices made manufacturer to Ministry of Industry, produce at least trade and 1IoT device by Cooperatives 2020 Drive the use of customized Increase in IoT devices Number of customized Demand driven National Treasury, devices devices sold Ministry of Industry, trade and Cooperatives

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Appendix I-7: Privacy and Security

Benchmark on Trust and Security Digital Belgium, an action plan that outlines the long-term digital vision of the country has identified digital confidence and security as one of its five priorities. It defines this to include “respecting digital rights and strategically and effectively tackling illegal practices”. The focus under this head includes; • Enactment and harmonization of Laws • International cooperation • Sensitization campaigns • Protection of critical public infrastructure • Online resolution of consumer disputes (ODR)

Cyber Security in Kenya

In its report titled ‘Kenya Cyber Security Report,’ Serianu notes that one of the most critical challenges facing Kenyan organizations is the lack of awareness among technology users with many of these users having little knowledge of the level of risk to which they are exposing themselves and their organizations.34 And while Kenya has for a long time lacked proper mechanisms to counter cybercrime, recent legislative interventions point towards a more secure cyberspace. A cybercrime countermeasure has been defined as an action, process, technology, device or system that serves to prevent or mitigate the effects of a cyber-attack against a computer, server, network or associated device. It can either be technical or regulatory; technical in the sense that computer and network users are advised to use Internet protection such as strong, unique passwords to protect themselves from hackers while regulatory measures include legal frameworks that define and detail the conditions for prosecution of cybercrime.35 The findings of studies on broadband strategies and plans such as those in the SADC member states and literature from other regions such as the European Union (EU) suggest that a national broadband strategy should address at least six key areas/themes which are important for its successful implementation and which should be supported by a platform comprising confidence in and security of networks, services, and users; and governance which also includes a monitoring and evaluation framework. At the core of confidence and security of networks and services, is information security and privacy, which form the support platforms upon which a solid digital economy can thrive. The Kenya Information and Communication Act defines cybersecurity as the collection of tools, policies, security concepts, security safeguards, guidelines, risk management approaches, actions, training, best practices, assurance and technologies that can be used to protect the cyber environment. Towards a Secure Cyberspace

In the wake of recent and rapid digitization, including digitization of government services, and the constant need for a robust, responsive and effective cybersecurity environment, a Cybersecurity Policy should therefore address ICT security concerns as bad experiences may limit the Internet/online experience and curtail the contribution of the sector to the country’s socio-economic development.

34 Serianu, Kenya Cybersecurity Report, USIU, Nairobi, 2016 35 Dache Joash, The State of Cybercrime: Current Issues and Counter Measures pp. 27-31

104 The National Broadband Strategy 2018-2023 Lack of adequate skills relating to computer/data and identity protection while online may compromise usage and participation, and as such represent important policy concerns, which also need to be addressed. The ITU guide on cybersecurity is presented in Figure 13

ITU Cybersecurity Guide

The ITU, in its guide titled the ITU National Cybersecurity Strategy Guide identifies 10 elements which they consider as constituting the main features of a holistic, multi-stakeholder and strategy led Cybersecurity Program. These are; 1. Top Government Cybersecurity Accountability; 2. National Cybersecurity Coordination; 3. National Cybersecurity Focal Points; 4. Legal Measures; 5. National Cybersecurity Framework; 6. Computer Incident Response Teams; 7. Cybersecurity Awareness and Education; 8. Public-Private Sector Cybersecurity Partnerships; 9. Cybersecurity Skills and Training Programmes; and, 10. International Cooperation Figure 16: ITU Cybersecurity Guide

The EU identifies one of its key objectives as making the Union a strong player in cybersecurity by being more ambitious in nurturing its competitive advantage in the field of cybersecurity to ensure that its citizens, enterprises and public administrations have access to the latest digital security technology which is interoperable, competitive, trustworthy and respects fundamental rights including the right to privacy.36 These practices provide experiences and aspirations upon which the Privacy, Trust and Security of the Kenyan Broadband can be hinged.

36 EU, EU cybersecurity initiatives: Working towards a more Secure Online Environment, January 2017 https://ec.europa.eu/digital-single-market/en/news/eu-cybersecurity-initiatives-working-towards-more-secureonline- environment (accessed on 28 December 2017

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Table 20: Strategy for Privacy and Security

Sub-Issue Objectives Outcomes Strategies KPI Baseline Target Time Responsible

Data Protection To ensure Comprehensive Offer recommendations to Data Protection N/A 100% by 2022 Parliament/ protection of Data Protection the Data Protection Task Act 2019 personal data Act force on privacy and data Stakeholders protection issues that touch on broadband

Child Online To guarantee Secure online Include online safety and Reduction in N/A 100% by 2022 Parliament/CA/ Protection safety of space for security in the education number of child- 2019 Service children while children online curriculum related cyber Providers online incidents Create mechanisms to deal with underage users

Parental Control

Awareness on To make users Affordable Research in Information Reduced online N/A Continuous at 2022 Stakeholders/ Information aware of the security solutions Security and Privacy security breaches least one Security online security collaboration Availability of up- Collaborate with existing Statistics on cyber Practices and risks per year Data Protection to-date data on research centres and give security incidents Procedures To ensure cyber security incentives to tertiary security- incidents institutions to do more conscious research on information users online security and privacy Educational Periodic countrywide Institutions/Priv research to study attitudes ate Sector towards these technologies and their uptake

106 The National Broadband Strategy 2018-2023

Cybersecurity To ensure Prosecution of Establish a cybercrime Prosecution for 100% by 2022 NPS/Ministry of accountability and coordinated forensic unit within the security breaches 2020 ICT and redress to cyber Directorate of criminal prosecution of breaches investigation (DCI) perpetrators of Availability of Establish Independent Availability of cyber security independent breaches independent cybercrime forensic Stakeholders forensic reports organizations forensic reports

Enforcement To ensure Utilization of Negotiate, ratify and adopt Number on bi- Continuous 2022 National cooperation in available mutually beneficial cyber lateral and Government/Re the international incident-enforcement multilateral levant enforcement of channels to laws/best practices agreements on Ministries cyber laws combat cyber- cyber-enforcement related breaches and crimes

Research, To promote Embracing Create research centres Number of Continuous 2022 KENET, MoEST, Capacity progressive available information MoICT, Building and research, exchange Participate in talent security research Universities Talent capacity channels and exchange and capacity centres Exchange building and opportunities to building programs talent increase and Number of trained exchange in improve capacity experts cybersecurity in information Number of trained security users 1. Further research, capacity building and talent exchange in Internet governance and regulation best practices within the borderless cyberspace

107 The National Broadband Strategy 2018-2023 Appendix I-8: Finance and Investment Table 21: Strategy for Finance and Investment

Sub-Issue Objectives Outcomes Strategies KPI Target Responsibility Financing for To stimulate Increase -Develop innovative financial funding At least one innovative 1 by MoICT, service ICT projects private investments mechanisms (e.g. Broadband financing for BB 2019 providers, The investments in ICT sector infrastructure Bonds, Government National Treasury, and promote Supported Broadband Venture CA PPPs within Capital fund) the ICT sector Use USF to extend broadband % use of USF for BB 40% of MoICT and CA coverage USF

Enhance the role of Government in No of enacted 3 by CA, National promoting broadband related Incentive fiscal policies 2023 treasury investments Develop linkages between the No of collaborations 2 by CA, Service financial and the ICT sector established between 2019 providers, MoICT ICT and financial services sectors Develop ICT-related Insurance No of ICT related 2 by schemes Insurance schemes 2023 Financing of ICT Increased % increase in Incentivize the private sector with % increase in 10% per Ministry of Trade, projects investment in private ICT financing models that show a positive investment annum State department the ICT sector investment and attractive return on investment or (IPC), CA low interest financing % government Increase in budgetary provision for % of budget 5% National Treasury funding ICT contribution to ICT National & MoICT directed Budget towards ICTs % County Motivate county governments to Allocation of County 5% County government increase funding to ICT Resources to ICT County Government funding Budget directed towards ICTs

108 The National Broadband Strategy 2018-2023

Sub-Issue Objectives Outcomes Strategies KPI Target Responsibility Number of Mobilize funds through national and Number of forums At least 1 MoICT & CA investment international forums held every 2 forums linking years ICT to financial sector Financing of a To source Attract an international investor to Receipt of Ksh 20B to NOFBI II MoICT national sufficient build a national backbone build a backbone backbone funds for BB infrastructure infrastructure infrastructure Elaboration of An investment Study on best business model Conduct of study 1 study CA investment and business within 6 and business plan within six months models months of of NBS NBS life

109 The National Broadband Strategy 2018-2023

Appendix II: Role of Stakeholders The deployment of broadband requires the concerted effort of various stakeholders including governments which play a key role. Governments at various levels have a critical role to play in the drive to have pervasive broadband infrastructure across the country. It is recognized that some governments have taken steps to partner with telecommunications/ICT service providers to deploy necessary fibre and other electronic infrastructure for the benefit of their citizens. Governments have necessary roles to play in removing many bureaucratic difficulties and obstacles that hinder faster broadband rollout. The Government efforts are complemented by those of the private sector and civil society. Table 22: Roles of Government and other stakeholders

Stakeholder Responsibility National/Government 1. Policy and Regulation 2. Administration of Right of Way County government 1. Removing barriers such as right of way cost and multiple taxation; 2. Participating in local government level negotiations and advocacy in communicating the positive economic impacts of broadband 3. Enabling and promoting the spread of metro networks 4. Providing funding for network build and broadband infrastructure development through Public Private Partnership programs including for rural and unserved/ underserved areas Sub-county 1. Working with communities to reduce disruption to infrastructure build and operation 2. Educating communities on the benefits and importance of broadband 3. Driving community based public services such as community access centres/points (CAPs) 4. Migrating local government services (e.g. salaries, health services civic registrations, levy and fees collections etc.) online 5. Eliminating delayed or unduly long permitting processes such as those for right of way (ROW) National Assembly/ 1. Reviewing existing Communications Law Parliament 2. Enacting new and relevant legislations that support the policy goals, plans and incentives for growing broadband Private Sector 3. Improving the quality of existing broadband service, extending coverage to new areas and connecting new users to the broadband experience. 4. Work with the government, consumer groups and other stakeholders, in a collaborative manner, the private sector will also work to fill the gap between advertised broadband services and the actual experience that users have. 5. Attracting and providing required financing for the investments Civil Society 1. Raising awareness about the benefits of broadband services to improve adoption. 2. Work with consumers to educate them on their rights as subscribers to broadband services 3. Provide capacity building opportunities as part of their work with disadvantaged groups Local communities 1. Ensuring the security of broadband infrastructure 2. Investing in broadband through bottom-up initiatives with support of Government KENET 1. Provide high speed connectivity and cloud services to the education, research and government institutions affiliated to the education sector including hospitals, in order to transform education and research using broadband ICT.

110 The National Broadband Strategy 2018-2023

2. Nurture broadband innovation as part of the National Innovation System 3. Lead in ICT/ broadband research and training; and develop ICT curricula.

Roles of National Government on Broadband37

1. Providing funding for network build and broadband infrastructure development through Public Private Partnership programs and the deployment of Universal Service Funds for rural and unserved areas.

2. Participating in state level negotiations and advocacy in communicating the economic impacts of broadband 3. Facilitating the enactment of new building codes and standards requiring the installation of telecoms/ICT infrastructure as a basic requirement for new buildings and estates;

4. Developing a national broadband availability Map and other databases for use in the planning and deployment of broadband;

5. Promoting green energy ICT initiatives;

6. Fast tracking current efforts to provide stable electricity supply;

7. Moving government services and processes online to stimulate broadband adoption and demand;

8. Generating Nationwide Awareness of the benefits of broadband;

9. Enacting laws where necessary to support the National ICT policy; and,

10. Engaging the Governors/authorities and positioning broadband as a recurring agenda item

Therefore the role for the MoICT with respect to broadband is one of accelerating penetration and access to broadband.

Source: Presidential Committee on broadband (2013). Nigeria's National Broadband Plan. Accessed July 07, 2014 from http://commtech.gov.ng/images/docs/The%20Nigerian%20National%20Broadband%20Plan%202013_19 May2013%20FINAL.pdf

Appendix III: Broadband Implemented through Programs and Projects In this appendix, a checklist for the effective delivery of the strategy and a program approach to the implementation of the strategy are presented. Checklist on Delivery of the NBS

In order to realize an effective delivery of the Strategy, the following should be ensured: (i) Technical capability (with special focus on interfacing and integration capabilities) for implementation otherwise delivery will be delayed; (ii) Contract management which is crucial because 40% to 50% of cost increases are due to poor contract management;

37 For details of this example, see http://commtech.gov.ng/images/docs/The%20Nigerian%20National%20Broadband%20Plan%202013_19May2013 %20FINAL.pdf

111 The National Broadband Strategy 2018-2023 (iii) Success criteria should be developed and a measurement framework created otherwise it will be impossible to track the progress of broadband delivery; (iv) Information and data which should include a repository of data across the program in the form of a dashboard which can be checked transparently by all stakeholders – at least the steering committee and program/project management teams; and (v) Coordinating authority for delivery of broadband

The NBS 2018-2023 projects will only succeed if there is an effective delivery framework comprising: (i) Governing structure with adequate capacity; (ii) Alignment of projects to the national and County development plans (MTP III) and County Integrated Development Plan II (CIDPs), the Big 4 Agenda and Vision 2030; (iii) Focus on both demand and supply sides of broadband with a clear understanding of the drivers of both the demand and supply sides; (iv) Funding of broadband which can be public, private, public-private partnership (PPP), and/or bottom-up initiatives; (v) Delivery model with the right incentives for everybody but that also includes timelines, penalties etc.; and (vi) Tracking and measurement of progress on/of the NBS projects through definition of targets and key performance indicators for each of the project objectives; and deployment of an aligned monitoring and evaluation framework. Program management perspective This perspective is necessary because each program under the NBS (e.g., e-health program) will have specific projects, which need to be coordinated. This perspective is lacking in a number of national BB plans with the resulting confusion in governance leading to delays, frustration and cost overrun. The deployment of broadband through projects with a focus on the services that will be delivered (starting with the user) is crucial. Some of the priority areas to be addressed in the NBS 2023 implementation can be the following depending on the particular national priorities: (i) Universal education; e.g. implementation of virtual classrooms project; (ii) Delivering universal healthcare to all such as via mobile health, telemedicine etc.; (iii) Food security; (iv) Transportation, such as provision of smart transport to deal with traffic congestion; and (v) Promotion of broadband usage to target various segments’ needs such as household, business, and government Focus on Projects Broadband should be implemented through specific projects with clear targets; and a monitoring and implementation framework. In this regard, concrete broadband implementation projects should be defined. They should be relevant to one or more identified objectives/strategies/focus areas and aim to achieve specific target outcomes in the plan. The project elements to be defined include: (i) project scope, objectives, targets; (ii) institutional/stakeholder responsibility (both primary and secondary); (iii) budget requirements and source(s); (iv) time frame, and key milestones; and (v) linkage and mutual interdependence with other projects.

Broadband Targets (HYPOTHETICAL EXAMPLE – TO BE REFINED)

112 The National Broadband Strategy 2018-2023 In order to track the implementation of broadband, it is necessary that targets be set and monitored at regular intervals to ascertain the progress being made. Kenya’s broadband targets for the year 2030 are presented in Table I-1. Table I-1: Kenya’s Broadband Targets to 2030

Target Penetration Baseline By 2020 By 2022 By 2030 measure (Year 2017) Broadband access in % of population 39.7% 50% at 90% at 3Mbps 50% 100% at 10Mbps Mbps (user 2Mbps at 100Mbps 80% at 100Mbps experience) Schools % of schools 50% at 10 100% at 10Mbps 100% at 1Gbps Mbps 80% at 100Mbps

Health facilities % of health 50% at 100% at 10Mbps 100% at 1Gbps facilities 10Mbps 80% at 100Mbps

Public sector facilities % of government 50% at 100% at 10Mbps 100% at 100Mbps offices 10Mbps

These targets are to be reviewed periodically and supplemented by pricing and quality of service targets as well as speed of installation and fault repair. The QoS regulations for Kenya are already in place where no distinction is made between rural and urban because every Kenyan should access the same quality of service wherever they are. Example of Broadband Plan Elements Together In order to implement BB through projects, we need projects targeting specific BB components, and focus areas with clear objectives and strategy; and specific project name/description. An example is as follows (Table I-2): Table I-2: Broadband Project

Broadband project - An example Component: Infrastructure Focus Area: Rural Broadband Access • Objective 1: Community broadband access points (CAPs) • Target Outcome: 50% of communities with access points by 2018 – KPIs = Functioning CAPs with minimum 1 Mbps, usage measures • Strategy: Develop public-private partnerships with national operators, local stakeholders; coordinate with other rural broadband initiatives; ensure local community participation, capacity building, effective management and monitoring • Project 1: Broadband CAP rollout Pilot Project – 100 communities in 2019 – Ministry responsible, USAF funding; collaborate with operators, local stakeholders

Example of Summary Broadband Plan segment A typical broadband plan segment showing focus area/thematic area, outcome, strategy, responsibility and project is presented in Table I-3.

113 The National Broadband Strategy 2018-2023 Table I-3: Sample Summary of Broadband Plan Segment for the Ministry of Education, Science and Technology

Focus Area/ Outcome Strategy Responsibility Projects Objective Education Target 1.Broadband 50% of Bottom Up Ministry of 1. Local BB access connections in schools by networks, linked to Education, networks schools 2018 schools Science and 2. School connectivity Technology

2. ICT Curriculum Customized National and local Ministry of 1. Collaborative ICT classroom tools collaboration on Education, curriculum curriculum Science and 2. ICT Apps Initiative development Technology

3. School 1.2 million Discounted bulk Ministry of 1. School ICT devices Devices laptops, tablets purchases, Education, project by 2018 customized Science and devices Technology, Private supplier

Appendix IV: Specific Constitutional Aspirations for ICTS under the Bill of Rights Implementation of rights and fundamental freedoms under Article 21 (3) in the Bill of Rights. All State organs and all public officers have the duty to address the needs of vulnerable groups within society. The needs include access to ICT.

Article 27 (1) on equality and freedom from discrimination provides that: “Every person is equal before the law and has the right to equal protection and equal benefit of the law.” The benefits of the law include benefits arising out of ICT regulation.

Article 31 on privacy provides that: “Every person has the right to privacy, which includes the right not to have— (c) information relating to their family or private affairs unnecessarily required or revealed; or (d) the privacy of their communications infringed.” These provide constitutional limitations in the use of information and communications.

Article 33 (1) on the freedom of expression provides that: “Every person has the right to freedom of expression, which includes— (a) freedom to seek, receive or impart information or ideas; (b) freedom of artistic creativity; and (c) academic freedom and freedom of scientific research”. This is useful in regulating ICTs especially in terms of content.

Article 34 (1) on freedom of the media provides that: Freedom and independence of electronic, print and all other types of media is guaranteed. The provision lays a constitutional foundation for regulating both infrastructure especially the frequency spectrum and content in relation to broadcasting and proposes governance principles for regulating the ICTs especially regulatory independence.

Article 35 (1) on access to information provides that “Every citizen has the right of access to— (a) information held by the State; and (b) information held by another person and required for the exercise or protection of any right or fundamental freedom….(3) The State shall publish and publicize any important information affecting the nation.”

114 The National Broadband Strategy 2018-2023 Article 46 (1) on Consumers rights applies to goods and services offered by public entities or private persons. The right applies to all goods and services including ICT related goods and services.

Article 54 (1) states that: “A person with any disability is entitled–– (c) to reasonable access to all places, public transport and information; (d) to use Sign language, Braille or other appropriate means of communication; and (e) to access materials and devices to overcome constraints arising from the person’s disability.” This provision prescribes access to ICTs by PWDs.

Article 56 on minorities and marginalized groups provides that: “The State shall put in place affirmative action programs designed to ensure that minorities and marginalized groups— (e) have reasonable access to water, health services and infrastructure.” Infrastructure includes ICT related infrastructure.

The Constitutional aspirations for ICTs on Governance principles and structures have focused on the following:

Article 10 on national values and principles of governance binding the State and all persons when enacting, interpreting and implementing the Constitution, any law and public thematic area. Values and principles relevant to ICT governance include sharing and devolution of power, equity, human rights, public participation and sustainable development among others.

Article 11 (2) on culture providing that: “The State shall— (c) promote the intellectual property rights of the people of Kenya.” Intellectual property promotion and protection is key to ICT governance especially through enhancing innovation in ICTs.

Fourth Schedule on distribution of functions between the National Government and the County Governments, Section 18 (i), (j) and (k) gives National Government the function of postal services; telecommunications; and radio and television broadcasting. However, in order to adhere to devolution requirements, cooperation/intergovernmental relationship between the National and County Governments is necessary and is addressed by the Devolution Laws.

115 The National Broadband Strategy 2018-2023 Appendix V. ICT Summary Statistics

Report on Desk Review of CA Annual Report FY 2016/2017 and CA Second Quarter Sector Statistics Report for the Financial Year 2017/2018 (1st Oct 17-31st Dec 17)

Summary of Findings In 2016, the ICT sector’s growth expanded by 9.7% compared to the 7.4% growth recorded in FY 2015/2016.38 (see Table III-1) Table III-1: Summary of Findings

Indicator 2015 2016 Population (Millions) 44.2 45.4 GDP at Market Prices (in KES Millions) 6,260,646 7,158,695 Growth of GDP at Constant Prices (% 5.7 5.8 GDP Per Capita at Constant Prices (KES) 91,890 94,757 Transport and Storage sub-sector GDP at Current Prices (KES. 518,043 563,684 Millions) Information and Communication sub-sector GDP (KES. Millions) 60,485 68,853 Source: Communication Authority of Kenya The estimated number of people with access to the Internet rose to 40.5 million during the year up from 37.7 million reported in FY 2015/2016.39 Management of Scarce Resources Frequency Management During the year, the Authority issued a frequency license in the 800MHz band to one Mobile Operator with the other two MNOs operating on trial licenses in the same band resulting to: i. Increased rollout of 4G services ii. 121% increase in 3G Transceivers iii. 53% increase in 2G Transceivers40 Fixed Links The authority assigned 1,043 links bringing the total number of installed fixed links to 8,423 representing a 14.1% increase.41 Fixed Wireless Access Systems A 3.8% decrease in the utilization of frequencies for this service was recorded. This was attributed to the availability of competing technology in the unprotected bands and the preference for robust fiber connectivity in provision of integrated services of voice, video and telephony.42 Maritime Mobile Service Identity (MMSI)

38 CA Annual Report, p4 39 Ibid, p5 40 P8 41 ibid 42 ibid

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During the period under review, 4 MMSI numbers were issued to ships flagged by Kenya.43 Assignment of Numbering Resources The Authority assigned 13 mobile National Designation Codes (NDCs) to mobile service providers to facilitate mobile telephony services and 4G services trials. They attributed the increase in demand to assignment to new Application Service Providers (ASPs) and growth in the provision of triple-play services.44 Promoting competition The Authority enforced the Kenya the Kenya Information and Communications Regulations, 2010 on Tariff, Interconnection and Provision of Fixed Links, Access and Facilities; and Fair Competition and Equality of Treatment.45 Mobile Network Services During the period under review, the mobile penetration rate stood at 88.7% down from the 90% penetration recorded in the preceding financial year.46 Internet Services Data Internet subscriptions increased by 7.9% to stand at 29,419,164. Terrestrial Wireless, satellite and fiber optic data/Internet subscriptions increased by 251.2%, 147.5% and 98.4% respectively during FY 2016/2017. Terrestrial mobile and fixed cable modem data/Internet subscriptions also rose by 9.1% and 29.3% respectively. There was however a decrease of 11.4% in fixed DSL data/Internet subscriptions.47 Table III-2: Internet subscriptions and users Table III-2: Internet Subscription and Users

Subscriptions/Users 2015/2016 2016/2017 Terrestrial mobile data/ Internet subscriptions 26,758,789 29,419,164 Terrestrial wireless data/ Internet subscriptions 13,449 47,231 Satellite data/Internet 280 693 subscriptions Fixed Digital Subscriber Line (DSL) data/Internet 3063 2,715 subscriptions Fixed fire optic data/Internet 27,571 54,700 subscriptions Fixed cable modem (Dial Up) data/Internet subscriptions 77,319 99,971 Total Internet Subscriptions 26,880,471 29,624,474 Total Number of Agents 158,777 180,657* Source: Communication Authority of Kenya The sector statistics Q2 Report

43 P10 44 ibid 45 P14 46 P17 47 P18

117 The National Broadband Strategy 2018-2023 Total data/Internet subscriptions stood at 33.3 million. Growth attributed to increased rollout of 3G and 4G mobile networks across the country.48 Number of terrestrial wireless subscriptions grew by 29.2% to stand at 82,362 subscriptions. Satellite subscriptions registered 8% growth to stand at 769 subscriptions. Fixed digital subscriber line (DSL) subscriptions dropped to 1,953 from 2,106 recorded in the previous quarter Fibre Optic data subscriptions increased to 99,643 from 90,548 marking a growth of 10% from the previous quarter. During the quarter under review, the number of fixed cable modem subscriptions declined by 2.7 per cent to stand at 96,876 from 99,564 subscriptions reported in the previous quarter while other fixed data subscriptions rose by 9.4 per cent to reach 6,700 from 6,127 subscriptions recorded during the previous quarter. 49 Table III-3: Data/Internet Subscriptions

Data/Internet subscriptions Jul-Sep 2017 Oct-Dec 2017 Quarterly Variance (%) Mobile Data Subscriptions 30,628,340 33,076,894 8 Terrestrial Wireless Data 63,749 82,362 29.2 Subscriptions Satellite Data Subscriptions 712 769 8 Fixed DSL Data Subscriptions 2,106 1,953 -7.2 Fixed Fibre Optic Data 90,548 99,643 10 Subscriptions Fixed Cable Modem 99,564 96,876 -2.7 Subscriptions Other Fixed Data Subscriptions 6,127 6,700 9.4 Total Internet Subscriptions 30,891,132 33,365,197 8.0 Source: CA, Operators’ Returns Broadband Services During FY 2016/2017, the total number of broadband subscriptions increased by 42.1% an increase attributed to the growth in WIMAX and mobile broadband subscriptions. The total available international bandwidth capacity increased from 1,730.74 Gbps to 2,906.87 Gbps representing an increase of 68%. International leased bandwidth and international leased undersea bandwidth increased by 0.2% and 0.3% respectively while international leased satellite bandwidth reduced by 42.9%.50 During Quarter 2 2017/2018, the total number of broadband subscriptions stood at 18.0 million up from 17.6 million subscriptions registered in the previous quarter with speeds of less than or equal to 256Kbps recording the least number of subscriptions whereas speeds greater than 2Mbps registered the highest number of subscriptions. The total international Internet bandwidth available in the country (Lit/equip capacity) increased to 3,182.592 Gbps.

48 CA Second Quarter Statistics Report for the Financial Year 2017/2018 (1st October-31st December 2017) p19 49 Ibid, p20 50 Above n 1, p19

118 The National Broadband Strategy 2018-2023 The increase to 148.6 Gbps from 83.0 is attributed to the expansion of capacity by Lion 2, a submarine cable landing company, in order to meet the increasing demand for bandwidth in the country. During the period under review, Satellite Internet Bandwidth also increased by 79.7 per cent to stand at 5.592 Gbps from 3.112Gbps recorded during the previous quarter.51 Table III-4: International Internet Available Bandwidth (Gbps)

International Connectivity Bandwidth Jul-Sep 17 Oct-Dec 17 Quarterly Variation (%) SEACOM 2,020.0 2,020.0 0 TEAMS 702.0 702.0 0 EASSY 101.4 106.4 4.9 Lion 2 83.0 148.6 79.0 Satellite Internet Bandwidth 3.112 5.592 79.7 Total International Internet Bandwidth (Gbps) 2,909.512 3,182.592 9.4 Source: CA, Operators’ Returns The total international used Internet bandwidth rose to 916.287 Gbps during the quarter under review from 887.187 Gbps recorded in the preceding quarter marking a growth of 3.3 per cent. This translates to 28.8 per cent of the total International available bandwidth being used in the country. The undersea cable bandwidth used during the quarter under review stood at 911.80Gbps up from 884.50Gbps recorded in the preceding quarter. Similarly, used satellite bandwidth increased by 67.0 per cent to stand at 4.487Gbps. The trend in international used bandwidth is illustrated in Table III-5.52 Table III-5: International Internet Used Bandwidth (Gbps)

International Leased (Used) Bandwidth Jul-Sep 17 Oct-Dec 17 Quarterly Variation (%) International Undersea Internet Connectivity Bandwidth 884.50 911.80 3.1 (Gbps) International Satellite Internet Connectivity Bandwidth 2.687 4.487 67.0 Total International Internet Connectivity Bandwidth 887.187 916.287 3.3 (Gbps) Source: CA, Operators’ Returns National Cyber Threat Landscape The National KE-CIRT/CC analyzed and validated the 4,589 cyber threats. It also identified 539 cyber threats that were critical and required immediate response.53 The various categories of the cyber threats handled during this period is indicated in Table Table III-6: Cyber Threats Validated and Respondent To

Cyber Attack Vector Oct - 17 Nov - 17 Dec - 17 Total DDOS 1 0 2 3 Domain Impersonation 0 2 2 4 Fake News 3 3 0 6 Malware 10 9 121 140 Online Fraud 8 9 7 24

51 Above n 11, p 24-25 52 Ibid p25 53 p26-27

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Online Hate Speech 30 26 6 62 Online Impersonation 26 45 33 104 Phishing 3 2 1 6 Spam 0 1 0 1 System Misconfiguration 14 28 145 187 Website defacement 1 1 0 2 Total 96 126 317 539 Source: National KE-CIRT/CC Notes- The indicators used in the NBS are not the same as those used in the CA Annual Reports and Sector Statistics. (These could be provided as annexures in the FY Reports)

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Appendix VI: NBS Review Technical Working Groups Participants Table IV-1: TWG Participants

No. Name Organization 1. Jennifer Gitiri Office of the Attorney General 2. Emily Muthoni EACC 3. Francis Monyango Strathmore University Law School 4. Patrick Mungai Showmax Multichoice 5. Leonard Mabele Strathmore University 6. Kennedy Kamau CoG 7. James Kioli Commcarier Satellite 8. Dianna Mbugua NEMA Kenya 9 Peter Mwawa Ministry of Interior and Coordination of National Government 10. Misare Njaga Jamii Telecommunications Limited 11. Adam Lane Huawei Technologies Limited 12. Michael Maina Wananch Group 13. Benjamin Kamicha KENET 14. Dr. G. Mugeni CA 15. George Adeka SAFARICOM 16. Dan Kwach EADC 17. Stanley Ochiobi Telkom Kenya 18. Sammy Itemere MoICT 19. Johnstone Ketuturi MoICT 20. Limacar Daniel MoICT 21. Harrison Mwaniki MoA&I 22. Victor Maina CA 23. Ruth Gitonga Techinovar 24. Nasubo Ongoma IHUB 25. Eng. Vincent Adul NCS 26. Francis Waithaka Finserve 27. Maureen Chepng’etich CA 28. Victor Anyanje Sigmund Peak International Ltd – Legal Expert 29. Paul Kiage CA and Chairman of the National Broadband Strategy Steering Committee 30. Lawrence Lubanga MTN 31. Dr. (Eng.) Thomas Senaji Sigmund Peak International Ltd - Lead consultant 32. Francis Kagunza DCI 33. Dr. Tobias M. Mwalili JKUAT 34. Eliud Kibor Sigmund Peak International Ltd 35. Meriem Slimani ATU 36. Francisca Omunga Private Consultant 37. Eng. Vitalis Olunga Vital Networks Limited 38. Dr. Kennedy Ombuki Sigmund Peak International Ltd 39. Wilfred Waithaka LIQUID Telecom 40 Peter Muia KENET 41 Eric Sifuna KENET 42 Alex Ombong’ KNLS 43 Edwin Ombega CA 44 David Muasya CA 45 Mboya Kiweu Sigmund Peak International Ltd 46 Ruth Kariuki CA 47 Christine Ngigi VISION 2030 Delivery Secretariat 48 Brenda Kairima CA 49 Ben Oduor LIQUID TELECOM

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50 Cleopa Otieno Kenya Telecommunications 51 Waudo Siganga Computex Society 52 Zipporah Msagha Safaricom 53 Fredrick Okello Liquid Telecom 54 Dr. Joe Kamau EMC 55 Zachary Mokua Safaricom 57 Leonard Mobele Strathmore University 58 Carde Njoroge KFC 59 Fiona Asonga TESPOK 60 Ronald Ng’eno CMA 61 Phillip Malinda CSK 62 Mwaura Peter Interior SDI 63 Lorna Nyandat Internet solutions 64 Andrew Masila SAFARICOM 65 Ruth Gitonga Techinova 66 Robin Busalo CA 67 Dr. K Getao MOICT 68 Daniel Obam NCS 69. Stanley Ochiobi Telkom Kenya 70. Robin Busolo CA 71. Bornface Mamboleo NEMA

Figure 17: TWG Chairs and Co-Chairs

Thematic Area Chairperson Infrastructure and Connectivity Eng. Vitalis Olunga Broadband Devices Adam Lane Application content and Innovation Dan Kwach Capacity building and awareness Dr. Tobius Mwalili Broadband Services Zachary Mokua Policy, legal and regulatory environment Eng. Obam Privacy and Security Francis Monyango Finance and Investment Francisca Omunga

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Appendix VII: Benchmarking The following is a brief comparison of the Kenyan NBS and those of selected countries: Morocco, Mauritius, South Africa, Nigeria, and Lesotho

A. MOROCCO At the heart of Morocco’s modern-day ICT vision is Digital Morocco 2013 which is the National Strategy for Information and Digital Economy 2009-2013 (better known as Maroc Numeric) released by the Ministry of Industry, Trade, and New Technologies. The strategy focuses on umbrella areas – the governance structure, the beneficiaries and program, and the budget allocation to fund proposed strategies and recommendations. The Digital Morocco stands out from earlier e- Morocco strategies primarily for two reasons: ➢ The first is its emphasis on broadband, which for the first time is not only explicitly articulated but also is the first pillar in the strategy. ➢ The second is the country’s demonstrated commitment - endorsed by His Majesty King Mohammed VI - to advance the sector and engage cross-sectoral governance bodies to support - l’agence nationale de réglementation des télécommunications (ANRT) – the National Telecommunications Regulatory Agency - its regulatory mandate and oversee implementation of planned activities.

Table 1. Comparison of the Content of Various Broadband Policies, Strategies and Plans

SOUTH NIGERIA (Broadband KENYA (Thematic AFRICA(Complementary LESOTHO (Six COUNTRY MOROCCO (Broadband priority areas) strategies for Nigeria) areas of the NBS) Strategies for SANBS) Key Issues)

1. Incentives that encourage a well- 1. Develop clear policy, Key Issue 1: balanced, broadband infrastructure and regulation and roles for the 1. Infrastructure 1. Digital Readiness What is greater investments in both fiber backhaul government broadband? and local access networks; 2. The prioritization of broadband in STRATEGIES/ universal access policies including 2. Ensure resilient submarine 2. Connectivity Key Issue 2: 2. Digital Development concrete efforts for dealing with cables and Devices Affordability THEMES affordability and awareness issues; and Key Issue 3: 3. Content 3. Promote enabling national 3. Building the digital Competition and Applications and Infrastructure future Private 3. Programs to develop digital literacy Innovations among the older and rural population in Investment addition to those that can effectively

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cultivate a next generation of e-content 4. Realizing Digital Key Issue 4: and software producers and developers. 4. Capacity opportunity 4. Provide required Building and The Role of Investment Awareness Government Key Issue 5: Ownership and 5. Critical National Coordination for Infrastructure and Cyber 5. Policy, Legal Broadband Security and Regulatory Outcomes

6. Optimize Spectrum Utilization. 7. Employ an Open Access Model for Network infrastructure Key Issue 6: 8. Provide Transparent Costs 6. Finance and Demand side and Capped Pricing Investment facilitator 9. Development of a National Fibre and Wireless Broadband Coverage Map 10. Drive demand through digital advocacy, literacy and inclusion

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The National Broadband Strategy 2018-2023 Legal and Regulatory Framework Unified Licensing Framework The Kenya Unified licensing framework comprises three categories: Network Facility Provider (NFP), Application Service Provider (ASP), and Content Service Provider (CSP)54. In addition, it has terminal equipment contractor license and Technical Personnel License This is comparable to that of Tanzania which four authorization categories, three of which are the same as Kenya: Network Facility Provider, Network Service Provider (included in NFP in Kenya), Application Service Provider, and Content Service provider. The preparation of ICT harmonized converged/ unified licensing framework was mandated by the 18th Congress of the East African Communications Organization (EACO) held in Kigali, Rwanda on 27th May 2011 where a task force was established and which held its meeting from 1st to 5th December 2012 in Nairobi, Kenya55. On the whole, the Kenya market structure as defined through license authorizations is comparable to those in the EAC and to best practice in a converged ICT market space. There may be unique variations but the principles are the same. Mauritius Policy formulation has been accompanied by the definition and adoption of clear legal and regulatory measures aimed at implementing policy and creating the environment necessary to promote investment and use of ICTs in Mauritius. The Institutional Framework was defined in 2001, with the creation of ICTA through the Information and Communication Technologies Act. A new licensing framework was introduced in July 2003 (2004 by the defunct CCK in Kenya), and applications from prospective operators were invited by ICTA for the following three categories.

The ICT (Amendment of Schedule) Regulations 2003 structures the licensing framework into; Commercial, Private Network and Engineering. The Commercial license category defines three types of licenses namely; ▪ Infrastructure provider- authorized to set up the physical infrastructure for operators and service providers, ▪ Networking Services Provider- allowed to offer networking services that includes provision of network capacity (e.g. leased circuits) to service providers , and ▪ Network Application Provider.

Similar to the 2003 ICTA licensing regime, Kenya’s 2004 licensing strategy which has Network facilities provider (NFP), Network service provider (NSP), Application service provider (ASP) and content service provider (CSP) categories of licenses has been a major driver for development of the sector. Institutional Framework Mauritius As an initial step, key institutional decisions were made in 1989 by Mauritius with the creation of the National Computer Board, the Central Informatics Bureau, the State Informatics Limited, and the State Informatics Training Centre Limited. Similar to Kenya, regulation and operation were also separated, with the Ministry of Information Technology and Communication Technology dealing with the formulation and implementation of government policies in the ICT sector, and Mauritius Telecom being created in 1992. Kenya undertook similar reforms in 1998 with the splitting of the defunct Kenya Posts and Telecommunication Corporation (KPTC) into three entities (the regulator – Communication Commission of Kenya, National postal operator – Postal Corporation of Kenya and Telkom Kenya Limited – Telecom operator), and various changes have taken place since then.

54 For details see: http://ca.go.ke/index.php/licensing-fliers/93-general/256- unifiedlicensingframeworkandnewmarketstructure 55http://www.eaco.int/admin/docs/reports/Harmonized_Converged_Unified_Licensing_Framework_Taskforce_Report_20 12_13.pdf

125 The National Broadband Strategy 2018-2023 More recently, the Ministry of Information and Communication Technology has also been mandated with the responsibility for the elaboration of policies to circumvent challenges facing ICT businesses as a whole, and has taken the lead in elaborating the National Broadband Policy of January 2012. This is in line with the Government‘s recognition of the importance of continuously monitoring policies and the value of the national ICT assets in linking to the sector reform programs as clearly enshrined in the Government Program 2010-2015 and emphasized in the National Information and Communication Technology Strategic Plan 2011-2014. . It is noted that Kenya is yet to promulgate a broadband policy.

Recognizing the need to bring regulation up-to-date in light of the convergence of ICTs and to promote affordable and adequate access to quality ICT services through functional market-driven competition and regulatory principles in a trouble-free Networked Information and Knowledge Society, The Mauritius Parliament passed the Information and Communication Technologies Authority (ICTA) Act in 2001, effectively creating the ICTA which has the status of a body corporate. This is similar to the Kenya ICT Authority (KICTA) which is driving digital villages and other ICT initiatives throughout Kenya.

The ICT Act 2001 (as amended), ICTA has actively pursued key objectives, including “to create a level playing-field for all operators in the interest of consumers” and “to ensure that telecommunication services are reasonably accessible at affordable cost nationwide and are supplied as efficiently and economically as practicable and at performance standards that reasonably meet the social, educational, industrial, commercial and other needs of Mauritius.” The Kenya Information and Communication Act (as amended) has comparable focus albeit with some differences specific to Kenyan context.

The Mauritian Competition Act 2007 also established the Competition Commission of Mauritius to promote competition and to deter anti-competitive or restrictive business practices. Similar to the CA, the ICTA of Mauritius is tasked with the promotion of the interests of the ICT sector, including the fostering of competition and the maintenance of a level playing field.

There is presently a statutory MOU which recognizes that in certain aspects of information and communication technologies regulation, the Competition Commission of Mauritius (CCM) and the Information and Communication Technologies Authority (ICTA) have overlapping powers, and in which the scope of intervention of both institutions is clearly described. In addition, there is the general agreement that ICTA acts ex-ante while CCM acts ex-post. Amendments made to sections 30 and 31 of the ICT Act in December 2011 established a statutory joint Working Group established between the ICTA and CCM in relation to market definition and significant market power (SMP) regulation. The equivalent of this arrangement is the Communications Authority of Kenya (CA) and the Competitions Authority of Kenya (CAK) whose complementary roles need strengthening through appropriate statutory joint working groups.

B. COMPARISON WITH MAURITIUS Infrastructure

Mauritius was the first market in the greater Africa region to launch mobile telecom networks (in 1989), the first to provide a 3G service (2004), the first in the world to develop a nationwide Wi-MAX wireless broadband network (2005), and one of the first to launch IPTV services (2006). Long term evolution (LTE) services are now widely available, while the government has also supported the building of a national Wi-Fi network, with additional funds set aside in the 2017-18 Budget. This financial support demonstrates deliberate action by the government to support broadband development by providing funding.

126 The National Broadband Strategy 2018-2023 All sectors of the ICT market are open to competition. The country is a hub for submarine cables providing international connectivity, with the IOX Cable expected to be ready for service in 2019 and the LION3 cable providing additional capacity. Mauritius is successfully pursuing a policy to make telecommunications a pillar of economic growth, and to have a fully digital-based infrastructure.

International Access

Mauritius Telecom is a member of the South Africa Far East (SAFE) submarine fibre optic cable project linking South Africa with Malaysia and India via Mauritius and Reunion Island. Mauritius Telecom- Orange has been connected to the SAFE submarine cable since 2002. A second connection point was installed in 2009 via the Lower Indian Ocean Network (LION) cable, a 1,800km submarine fibre optic cable connecting Mauritius, Reunion and Madagascar with a capacity of 1.3Tb/s. Mauritius Telecom and Emtel have invested in Lower Indian Ocean Network (LION) in a joint venture with France Telecom and Orange Madagascar. Mauritius Telecom is also a partner in the ACE submarine cable which runs from France to South Africa along the continent’s west coast.

Through its NBS, Kenya has made strides in ensuring international connectivity and supply of bandwidth that enables Kenyans to communicate at high speeds with the rest of the world; Kenya has the following international submarine cables landing at the port of Mombasa; The Eastern Africa Submarine Cable System (EASSy), The East African Marine System (TEAMS) and SEACOM cables. Similar to Mauritius, the Kenya ICT network operators and service providers have also co-invested with the government in broadband infrastructure such as in the EASSy and the TEAMS. Spectrum management Since its creation in July 2002, ICTA has achieved several significant milestones pertaining to spectrum management which have greatly helped the development of the ICT sector by enabling new technologies to be deployed and rollout of novel services in Mauritius. The CA has similarly addressed spectrum management with a view to ensuring that there is sufficient spectrum for use to deploy broadband.

Recognizing the potential of 4G to offer a solution to operators to deliver a range of data services, at much higher speeds with the added advantages of mobility and flexibility, ICTA adopted a Decision on 5 June 2012 on Additional Spectrum for the Terrestrial Component of the International Mobile Telecommunications (IMT) in the 1800 MHz Band to release additional spectrum for operators in Mauritius to provide high-speed mobile Broadband services such as 4G and beyond (LTE).

This Decision is in line with the Government’s National Broadband Policy (Kenya is yet to elaborate a National Broadband Policy) to gear Mauritius towards greater broadband uptake and penetration so Mauritian citizens can benefit from the full range that Broadband connectivity can provide in terms of innovative services. Additional spectrum is already being made available for the deployment of the Frequency Division Duplex (FDD) for the terrestrial Component of International Mobile Telecommunications (IMT) in the 1800 MHz band. Interconnection Landmark decisions were made by the CA (and its predecessors) in dealing with interconnection charges such as the Interconnection Determination No. 2 of 2010 on mobile termination rates. In terms of major decisions taken by Mauritius in respect of interconnection, a number of key decisions have affected both the wholesale and retail level, including:

➢ Carrier pre-selection for international calls (2004),

127 The National Broadband Strategy 2018-2023 ➢ Calling Part Pays (CPP) regime & cost based interconnection charges to mobile operators (2004), ➢ Minimum termination charges for international calls terminated in Mauritius (2006), and cost- based interconnection charges to fixed line operators & no provision for Access Deficit Charges (2006 and 2008).

These decisions have not only assisted interconnected operators in terms of their business case, but have also ensured competitive voice call tariffs to end users within various markets. Kenya has implemented similar and more other regulatory decisions to ensure affordability of ICT services and to spur the development of the ICT sector. However, more will need to be done to address areas that represent gaps such as with regard to regulations on cyber security which are needed.

Pricing: addressing affordability Another example of effective regulation concerns the regulatory interventions regarding the pricing of international access. The Kenya regulator (and its predecessor, the defunct CCK) have progressively addressed the demand side of the ICT (and by extension broadband prices) through evidence based price regulation such as through empirical cost studies that led to the regulation on interconnection charges. In Mauritius, much has been accomplished in terms of falling prices for international connectivity, especially from 2002 to 2012, when various determinations were made by the ICTA pursuant to applications made by Mauritius Telecom Ltd (MT) in accordance with section 31 of the ICT Act.

One of the price determinations, for example, addressed the issue of the high costs of monopoly international bandwidth on the SAT3/SAFE Cable, spurring the incumbent to lower prices. A similar picture is applicable in terms of bilateral half circuits also between 2002 and 2012, with an average reduction of up to 77% over the selected routes. In Kenya, the international band width costs have significantly dropped since the implementation of submarine cable systems landing at the port of Mombasa with customers have alternative providers hence benefitting from the competition on the international connectivity segment.

Price determinations measures such as those by Mauritius, and the effective reduction in international bandwidth prices have effectively spurred the development of economic opportunities, including in the ICT sector, with call centres and Business Process Outsourcing (BPO) gaining significant growth in the years following such price reductions as is also the case in Kenya. For example, between 2002 and 2012, the price of a full circuit E1s (a 2Mbps capacity), from Mauritius to Paris, on SAFE fell by as much as 84%. Tariffs for half circuit E1s on selected routes were also affected, with on average a 65% decrease over the period 2005 to 2009. Kenya has experienced similar price phenomena, thanks to the development of international connectivity. The CA has implemented similar decisions as those by its Mauritius counterpart, ICTA, which have as well had an impact on the price of the ICT services though more needs to be done to increase affordability of the ICT services in general and broadband in general. Specifically, According to Interconnection Determination No. 2 of 2010 dated August 16, 2010, the CA reduced mobile interconnection rates from Kshs4.42 per minute to Kshs2.21, representing a 50 per cent drop. “The rates will progressively decline by 35%, 20% and 15% annually in 2011, 2012 and 2013 respectively to stand at Kshs0.87 by 201456”, reads the Determination.

Content, capacity building and investment

56 https://www.kenyaengineer.co.ke/determination-on-interconnect-rates-for-fixed-and-mobile-phone-services-as-issued-by- cck/

128 The National Broadband Strategy 2018-2023 The other area of comparison concern Content applications and innovations (CAI), Capacity building and awareness (CBA), and Financing and investment. The general observation is that these thematic areas need more focus because the first two are demand side issues while the third thematic area is a supply side issue. While finance and investment is being addressed by the PPPs across the reviewed countries, there is still need for more innovations in the financing and business models to fur promote broadband development. Government (including the regulator) and other organizations such as consumer organizations, learning organizations (and centres of excellence) and service provider are also well placed to drive the CAI and CBA.

In summary, Kenya through the CA is employing best practice with regard to regulation of the ICT sector though more will need to be done moving forward pertaining emerging issues around broadband including more precision on cybersecurity and infrastructure sharing, among other areas that constitute gaps and need attention. Further, the Kenya ICT market operates in a manner consistent with best practice though there are areas that need further improvement and which should be addressed in the reviews of the NBS.

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Appendix VIII: Investment and Business Model 1. Investment models There are several investment models that this strategy can use for the various projects enlisted: S/ Comment/Issue Project Proposed solutions N /Investment model 1 Investment/financin Infrastructure Although most of the financing should come from the private sector, funding for the relevant g models Investment- national projects for network roll-out also comes both from national public funds and from the USF. The following models of investment apply to several projects • Government funding: Increase Government spending in terms of budget allocation. The planned expenditure could be increased to 5% up from 0.05%. The principal role of the national government is to make the market work efficiently and provide the operators with good conditions. For example, it is cost-effective for broadband to be jointly laid or for duct for broadband (e.g. empty pipes) to be buried when electricity networks, water and sewerage, or other infrastructure are expanded or upgraded. • PPPs: This could involve partnerships or joint ventures between e.g. KPLC and Safaricom PLC or SGR and say ZUKU. The trend towards increased demand for high speeds of Internet will drive investment partnerships between Internet/Telkom companies and public sector finically liquid companies to invest in BB. The rationale for this comes from the fact that Kenya has the highest Internet speeds in Africa: Kenya (12.16 MBPs); Rwanda (1.69); SA (6.74); Mauritius (5.71) and Morocco (5.1). A caution offered in this plan is, the principal rule that public-sector players must not undertake commercial activity in competition with private- sector players is to avoid the danger of distorting competition. Regional and local initiative for public-private collaboration that promote the deployment of infrastructure should also be sought carefully. The Government will promote cooperation between the public and private sector in developing networks in areas which are considered as underdeveloped. Enabling fair conditions for ensuring competition between network providers for broadband Internet. This can be done by enacting necessary laws to protect investment • Build Operate and Own: This model is recommended especially to County governments- where they can develop BB infrastructure and deploy fibre network to residents in these regions. This is because they own, control access to land and grant licenses to operators to deploy networks. The county would own the networks, have a fibre-based infrastructure locally, which networks may cover township service points, businesses and residents. Such county investment would facilitate enterprise and use of Internet for businesses, educational institutions, and government offices. These County broadband investments needs to be regulated by policy so that some counties do not overcharge.

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• Incentives for private investors; Tax incentives and holidays to investors to enable recover their investment would be helpful in attracting new investors in BB. Other forms of incentives could be in form of Home improvement tax allowance for connection of broadband cables. The Government can introduce possibility of a tax allowance for household work and for work on the repair, maintenance and refurbishment and extension of homes that require broadband services. The purpose being to reduce the level of undeclared work and to increase the labour supply. A home improvement tax allowance can be available for certain types of groundwork, e.g. on cables for electricity or electronic communication directly adjoining the building. The allowances reduce the cost of and promote upgrading of access networks for high-speed connectivity. Thus, it is both an investment driver and promotes enterprise • Awareness of regional financiers; Increased awareness of available financiers in the region can help in gaining access to investment funds. Financing agencies like, ITU, World Bank, AFDB can be explored particularly because they have interest in investment in BB and IT infrastructure. 2 Business Models Business • Unbundling; i.e. Segregation of services so that one provider provides infrastructure and models another connectivity or have different SPs to conduct last mile connectivity etc. The unbundling can be into three layers Passive layer, Active layer and Service layer. This however is dependent on the licensing regime.

In some cases, especially if the vertically integrated actor is deemed to have significant market power (SMP), regulation imposes that network access be opened to competitors, either at the passive or the active layer. In that case, the network owner designs the network to deliver its own services and gives access to its competitors in forms compatible with the network design. Although sometimes incumbents refer to this model as “open access”, this is in reality a vertically integrated model with unbundling (either at physical layer, called local loop unbundling (LLU), or at the active layer, called bit stream access unbundling. These business models should be operationalized through licenses for various actors. If, on the other hand, the roles are separated, we talk of an open network model. In an open network the infrastructure that is available to all market participants is at equal conditions. With regard to Investment and Business models, the actions are presented in Table 6.

• Market players: Current and new market players or providers drive technical development and should be encouraged and enabled to develop new broadband-based services and business models and make investments in infrastructure for broadband. A case in point is where housing companies deploy fibre networks to offer the residents Internet services, raise the value of the property and gain control of the infrastructure. Several residential developers are doing this in urban cities in Nairobi, Mombasa and Kisumu, particularly in gated communities. Faiba Homes is an example, providing high speed Internet at home.

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• Business outsourcing: For example, in cloud computing companies can outsource software, computer capacity, storage space and other IT to a third party. This is the case of LIQUID Africa a South Africa company that outsources. The services then become available to the users through the Internet, generally as a subscription service, contributing to new ways of working and increased and availability for the users. • Next generation networks (NGN): NGNs are an ongoing technological development in which the networks are upgraded with fibre optic cables closer to the end-user so that higher speeds can be offered. Fibre and Wireless technologies are being developed in parallel to provide higher speeds and better utilization of spectrum. An example is Fibre, replacement of present-day GSM and 3G technology to 4G/5G. Terms such as Faiba Home (high speed Internet at home), 4G (Faiba4G) and Faiba Connect (Jamii Telecom Internet) are used. Safaricom Fibre to home coverage, POA WI-FI Internet include NGN base on high speed Internet targeting urban users. Citizens’ need to be educated about the next generation access networks and their offered opportunities. This awareness will increase uptake and use of broadband 3. Demand side Creating • Increased e-government services: e.g. e-health on the big 4. For example, to cancel and re- broadband Business book appointments, renew prescriptions and ask questions. With high speed connection connectivity. demand patients can also take a picture, for example of a tick bite or rash, or swollen leg (already happening) and send it by MMS message/WhatsApp to a skin specialist. E-Medical - How to increase information about a possible diagnosis and treatment can be done 24 hours demand side on • New Businesses: Broadband access is required in most businesses for contacts with connectivity on BB customers, suppliers and authorities, especially in rural and remote areas in Kenyan devolved environment. More and more businesses are choosing mobile office solutions. Example is a company that manufactures electronic support functions industrial use as in Konza silicon savannah city. A high capacity connection is essential as large files are sent. Production relating to devices for example for monitoring, remote control, programming and control systems can be done.

2. Case studies on financing of broadband (i) Case Study of France PPP: France’s biggest optical fiber PPP contract is worth over US$1b for private financing. ► The THD Grand Estimate PPP project is France’s biggest optical fiber PPP contract and one of the largest in Europe ► To connect one million households and businesses across over 3,600 cities ► Construction of the project is due to be completed in 2022, with a total term of 35 years (ii) India PPP Case Study: The Government of India has planned current NDCP 2018 to be funded through Public Private Partnerships where: ► BharatNet: Providing 1 Gbps to Gram Panchayats upgradeable to 10 Gbps ► GramNet : Connecting all key rural development institutions with 10 Mbps upgradeable to 100 Mbps

132 The National Broadband Strategy 2018-2023 This does indicate that there can be many forms of partnerships as in the case of India.

133 The National Broadband Strategy 2018-2023 Appendix IX: Communication Strategy Purpose Effective stakeholder engagement and communication will be essential for successful implementation of the NBS 2023. The purpose of this communications strategy is to create awareness, understanding and commitment to achievement of Kenya’s digital vision.

Objectives • To engage and communicate to create awareness on broadband; • To collaborate by facilitating reflection, sharing of knowledge and key lessons as well as engage all relevant stakeholders in the implementation of the strategy; • To monitor and act by creating opportunities to identify and address gaps to achieve broadband vision for Kenya. • To create awareness through public consultations regarding major aspects of broadband development

Target Audience The intended audience includes Parliament, the Cabinet, Investors, Service providers, consumers of broadband, learning institutions and the general public comprising adults, youth and children. Specific messages will be customized to these audiences and communicated to them on regular basis

Principles The following principles will guide the approach to stakeholder engagement and communications in this strategy. 1) Clarity: make the purpose and benefits of this NBS clear to all stakeholders by using appropriately tailored messages and methods. 2) Consistency: use agreed key messages and techniques to build awareness of broadband 3) Efficiency and effectiveness: use existing communications channels and mechanisms known to be effective in reaching target audiences. 5) Engagement: genuinely involve and collaborate with key stakeholders through multiple and two-way communications

Roles and Responsibilities National Broadband Council: The NBC will responsible for facilitating targeted and harmonized communication. They will also implement the communication strategy and policy and take lead and responsibility for facilitating and promoting good internal and external communications, as well as providing professional advice and support to the Cabinet Secretary. Broadband Delivery Unit: The BDD will work with the NBC to coordinate and track the progress of all communication activities on a day-to-day basis NBS Program managers: Each of the eight thematic areas in this strategy will form a program headed by a program manager. Theses managers will work with the BDD to agree on messages and the methods of appropriate communication and respond to requests by the Unit (BDD) to enhance communication at their programs level and assist in the timely delivery of all the NBS 2023 actions and targets. They will also work in partnership with staff and their representatives in the implementing agencies to ensure the Communications Strategy succeeds. All implementing agencies: These agencies will communicate appropriately with NBS program managers to notify them (program managers) of any communications issues raised by service providers and the general public.

Communications methods

134 The National Broadband Strategy 2018-2023 This strategy will adopt both external and internal communication media below

Further, the following related aspects to communication would also be ensured • Periodicity of communication- the periodicity of the communication to target audiences e.g., Quarterly, Annually, etc. For this NBS, the communication will coincide with the M&E program, which will specify the intervals at which various milestones are expected. This notwithstanding, the whole strategy will be communicated at the launch and then periodic communications according to the M&E will follow. • Budget for the communication activities • Being on Brand – which means being consistent with the various attributes of the communication such as logo, typefaces, slogan, colours, and key messages and the way words and images are used on all applications. • Promotion; e.g., promoting the website containing the intended communication such as providing pop-ups of the link in other websites

Review The strategy will be reviewed annually through clear and measurable criteria for both internal and external communication to determine the level of success in meeting objectives the objectives; and using these reviews to improve on the strategy. External perspective Internal perspective ❑ Have you achieved your objectives (i.e. raise funds, ❑ Did you reach the right people within the create awareness etc.) organization? ❑ Did you reach the right audience? ❑ Did they understand what the message was ❑ Did you use the right tools? - did they do what had to be done? ❑ Were decisions taken as a result? ❑ Did you use the right tools? ❑ Did you come in on budget? If you did not, why?

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Communication Plan Strategy Activity Indicator Responsible Timelines Enactment of Sensitize National Assembly and the Senate on the need for Relevant legislations and amendment to Cabinet 2018/2019 appropriate laws to appropriate laws that promote Broadband existing legislation enacted Secretary spur broadband Cross border cooperation in the enforcement of privacy Cooperation agreements/ MoU with other Cabinet 2018/2019 laws- governments must possess the capabilities to enforce countries Secretary cyber laws, which in many cases requires cross-border No. of Law enforcement agencies with cooperation necessary education, knowledge and skills to enforce cyber laws Draft new laws and regulations to address some of the supply Broadband enabling regulation including NBS Council 2018/2019 and demand issues associated with developing broadband those on spectrum allocation are in place networks and services Protection of Sensitization on standards set by international humanitarian NBS Council 2018/2019 intellectual property law on content regulation including surveillance and rights monitoring and advocacy regarding intellectual property rights in cyberspace (advocacy) Ensure `effective Examine existing laws and advise on institutional MDA advised on the institutional NBC 2018/2019 institutional responsibilities arrangement to govern and deliver NBS BDU framework to deliver 2023 on broadband Create adequate awareness to implement laws and Implementing agencies are aware of and NBS Program 2018/2019 regulations that give rise to an enabling environment implementing their respective mandates managers on the NBS 2023 Promote broadband Sensitize MDA on the need to allocate funds for funding for Increased BB funding by the government NBS Council 2018/2019 funding broadband initiatives in those departments Sensitisation of investors on the opportunities to invest in Increased awareness of investors on NBS Council 2018/2019 broadband and on the incentives that government will provide opportunities in BB development Broadband security Sensitize the general public on security while using broadband Awareness creation on broadband security NBS Program 2018/2019 and privacy Build global alliances and promote the application of Increased collaboration on ensuring NBS Council 2018/2019 international law in cyberspace cybersecurity Broadband services Create awareness of BB services and their potential to all (i) Customers are aware of the available Service 2018 of good quality consumers broadband service providers (continuous) (ii) Customers are able to utilize BB services for socio-economic empowerment Broadband Business To create awareness of the possible BB business models: Physical infrastructure, active network Models Passive layer, Active layer and Service layer and opportunities providers and service providers are aware for PPP in each layer of the existence of partnership opportunities and the guideline, regulations or policies that apply

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Appendix X: NBS 2023 Projects NBS 2023 Projects Table 23: Proposed NBS 2023 Projects

Thematic Area Project Proposed Target Devices Design and manufacture broadband devices in At least 1 device by 2020 Kenya At least 1 programme y 2020 Device leasing programme (e.g., refurbish and lease devices) Capacity National public education on broadband One awareness campaign every Building and Digital Literacy program (DLP) and skills-based quarter Innovation curriculum for imparting broadband skills at all 100% implementation by 2023 levels of society– adult programs, tertiary programs and primary/secondary focused programs ICT curriculum at all levels of education: Develop All programmes implemented by competency-based ICT degrees, engineering 2022 degrees, and applied ICT degrees, which graduate at least 10,000 persons every year Certified programmes Development of professional certification programs implemented by 2021 meeting the needs of an Integrated digital Continuous education system. Integrated industrial attachment Capacity building for research on broadband programme by 2020 Integrated industrial attachment (attached to some Continuous industry and tied to manufacturing) Strengthen the presidential digital talent programme (PDTP) by creating capacity at the Continuous strategic level; e.g., a PDTP to be trained to co- Increase by 10% yearly create content with a professor and co-own the content and the proceeds, E-learning Expanded by 2021 Capacity building of citizens on freedom of information and responsibilities with regard to broadband BPO and ITES capacity expansion Expansion of Kenya Institute of Mass communication (KIMC), Infrastructure Supporting physical infrastructure 50% on all roads by 2022 and • Duct construction - National Project for provision Connectivity of ducts (on public roads) as an open access infrastructure to be used by all but owned by the national government. • The duct physical infrastructure construction to 100% connectivity by 2023 be done on the cabinet (public road) by the national government and private investors 100%^coverage allowed to offer services to the end user National broadband infrastructure (NOFBI): 50% of all sub counties by 2022 Extension of the National broadband infrastructure and 100% at constituency HQs (NOFBI) to the sub-county level-an estimated 2500 Km 100% connectivity by 2023 Deployment of access network using multiple technologies including expansion of 3G and 4G 100% by 2023 coverage and introduction of 5G. 100% by 2023 Setting up of public Internet access points and Bottom-up citizen networks 290 by 2023 Last mile connectivity by extending broadband to 100% in all constituencies by the Ward level- entails construction of Ward base 2023

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stations at least 2 stations for each of the 1,450 wards in the country. Extend BB to all learning Government Common Core Network (GCCN) linking institutions by 2023 all MDAs and Counties County connectivity project (CCP) 1 national and 100 % county Constituency innovation hubs (CIH) centers by 2021 Bottom up citizen networks to supply broadband services to the users in all counties. Broadband for Digital Education by providing Internet connectivity to all secondary schools, TIVET and other tertiary learning institutions through KENET. National and constituency data centers

Policy, legal Enact data Protection law (Article 31 of the Enactment of Act by 2020 and regulatory Constitution) Enacted legislation by 2020 framework Enact law declaring broadband as critical Enacted legislation by 2021 Infrastructure Finalized and launched by 2020 Create laws and regulations on PWDs access to Enacted by 2021 broadband Finalization of the revised National ICT policy for Issuance by 2020 Kenya Enactment of relevant legislations (cf. Table 2: Issued by 2021 Pending legal instruments and Fundamental Freedoms) Issuance of regulations to promote broadband deployment and use Develop regulations to operationalize the various laws related to broadband e.g. on data protection and cyber security policy Services, Digitization of all Government content, registries, 100% by 2022 Content and programmes and services Services and content standards applications Creation of standards for services and content, by 2021 Capacity building in Digitization technology, Constituency Establishment of Media city/ park e.g. Studio 1 by 2021 Mashinani Programmes in all local Multilingual edutainment programmes including languages by 2023 subtitles eg.Y254, heritage channel 1 promotion campaign bi- Content, applications and innovations promotion annually project Local language content Project on local language content developed for all languages by 2023 Big 4 and BB Connect all hospital to broadband to provide 100% by 2020 universal healthcare services delivery at level 1-6 2 systems by 2022 heath facilities. Develop e-agriculture systems to improve food Embed in all smart housing security projects Embed broadband in the government affordable 100% of all manufacturing housing project and in other housing projects to realize smart housing Promote broadband in the manufacturing sector to improve efficiency Privacy and Establishment of a cyber security operations centre 1 security operation by 2021 security and International collaboration on cybersecurity. 1 study by 2021 Study on levels of privacy and security breaches to At least 1 awareness campaign inform further policy, legislation and regulation every quarter Awareness creation on cyber security

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Child online protection 80% reduction in number of child-related cyber incidents by 2020

Finance and Creation of conducive environment for Broadband Fiscal and regulatory incentives Investment investment through fiscal and regulatory incentives implemented PPP projects across the NBS value chain BB funded at over 70% by the private sector

Broadband for Deployment of broadband to meet the needs of the PWDs PWDs e.g., 1. Project to avail adequate devices for PWDs that have visual, audio or locomotive features 2. Innovative services for PWDs by service providers 3. Project for IoT to provide multiplicity of services for PWDs Governance 1. Establish the National Broadband Council and Delivery 2. Establish the Broadband Delivery Unit (Institutional framework)

County Broadband infrastructure: The County Government should prioritize the County broadband/ IT infrastructure and encourage investment partnerships, joint installations for works in excavations, and other broadband infrastructure. Such collaborative programs will reveal the overall status (baseline) of the county regarding access to broadband in the county, the needs of businesses, individuals and the public sector and have, the need for action and how public-sector and private-sector players can collaborate. More effective coordination on planned Infrastructure & excavation works. The Government through the CA can task an Agency with reviewing/auditing the present-day forms of broadband infrastructure works and submitting proposals for improved coordination, development and information management. The aim is to facilitate collaboration between different players in the expansion of broadband infrastructure and to increase opportunities for competition at physical infrastructure level in digital communication in connection with the deployment of high-speed networks. Effective coordination will reduce the lead time that service providers/ operators may be facing in concluding agreements with the government agencies and in obtaining necessary permits for the deployment of infrastructure for broadband. The government can consider creating a company that would own and manage a nationwide fibre network under the broadband infrastructure. Coordinate IT-based development projects in government agencies: This project would target finalization of e-government services and coordination of IT standardization in Government offices, Huduma centres, and county government service areas. This includes an effort to increase use of IT and paperless operations in public sector, tertiary educational institutions, healthcare centres, and research institutions.

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